DBE Business Studies Grade 12 Teachers Guide 2022

BS Grade 12 TG.
indb 1 2022/03/14 10:18:36

Foreword from Absa
Absa is playing a shaping role in Africa’s growth and sustainability through a focused set of actions that bring commercial and
societal outcomes together, creating shared value. Absa implemented a range of programmes aimed at enabling access to
quality education to contribute towards an inclusive society. Absa in partnership with the Department of Education is a proud
funder and supporter of the Digital Learner Books and Teacher Guides for Business Studies Grades 10 to 12
Dr Reaan Immelman
Head: Education Delivery
Quality Assurance team for the Digital Business Studies Grades 10 to 12 Learner Books and Teacher Guides
Annacletta Fisane Ngubane, Busisiwe Zwane, Cherylleen Gordon, Enoch Rasmeni, Florence Baloyi-Jele, Fouzia Peters, Frank
Ofori, Habiel Adams, Handri van Rooi, Hester Steenkamp, Joyce Strydom, Leicester Momberg, Madeline Trollope, Maselo
Ditshego, Medupe Shadrack Mmui, Melanie Momberg, Mzikaise Masango, Nonhlanhla Gumbi, Petra Burger, Sybil Mdunge.
Project Management team for the Digital Business Studies Grades 10 to 12 Learner Books and Teacher Guides
Henry Kavuma – DBE Digitisation, Mimi Mini – DBE LTSM, Ntebo Mkhondo – DBE Administration
Jeanine Briggs – Absa Management, Julia Lhuillery-Moulder Project Coordination – Absa, Zainab Karriem Publishing – Absa
Grade 12 Teachers Guide
Book ISBN: 978-1-77633-231-1
First published in 2022
Published by: The Training Room Online and Imprint Publishing
Copyright in the text remains with the contributors.
Restrictions
You may not make copies of this book in part or in full – in printed or electronic or audio or video form – for a profit
seeking purpose.
Rights of other copyright holders

All reasonable efforts have been made to ensure that materials included are not already copyrighted to other entities, or in a
small number of cases, to seek permission from and acknowledge copyright holders. In some cases, this may not have been
possible. The publishers welcome the opportunity to redress this with any unacknowledged copyright holders.
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Contents
Introduction........................................................................................................................................... 4
What is Business Studies?.......................................................................................................... 4
The purpose Business Studies................................................................................................... 4
Annual Teaching Plan......................................................................................................................... 6
How to use this Teacher’s Guide.................................................................................. 14
Introduction to the Textbooks..................................................................................................... 14
Best practices – lessons for the classroom............................................................................... 10
Planning............................................................................................................................................. 10
Exam preparation – tips for the teacher................................................................................. 11
Exam preparation – general tips for the learners............................................................... 13
On the day of the exam................................................................................................................. 15
Struggling learners........................................................................................................................ 16
General tips, links and ideas........................................................................................ 19
Topic 1 The impact of recent legislation on businesses....................................................... 23
Topic 2 The human resources function....................................................................................... 51
Topic 3 Ethics and professionalism.............................................................................................. 74
Topic 4 Creative thinking and problem-solving....................................................................... 83
Topic 5 Macro environment: Business strategies................................................................... 93
Topic 6 Business sectors and their environments.................................................................. 112
Topic 7 Quality of performance...................................................................................................... 115
Topic 8 Management and leadership........................................................................................... 134
Topic 9 Investment: Securities....................................................................................................... 145
Topic 10 Investment: Insurance.................................................................................................... 156
Topic 11 Team performance assessment and conflict management................................ 165
Topic 12 Human rights, inclusivity and environmental issues........................................... 175
Topic 13 Social responsibility and corporate citizenship: CSR & CSI.............................. 185
Topic 14 Presentation and data responses............................................................................... 191
Topic 15 Forms of ownership: Criteria for success and/or failure................................... 199
Formal Assessment Tasks................................................................................................................ 208
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Introduction
What is Business Studies?

The subject, Business Studies, deals with the knowledge, skills, attitudes and values that are critical for
informed, productive, ethical and responsible participation in the formal and informal economic sectors. The
subject encompasses business principles, theory and practice that underpin the development of entrepreneurial
initiatives, sustainable enterprises and economic growth.
The table below indicates the four main topics and corresponding topics in the Business Studies Curriculum.
Weighting of Curriculum Topic

Business Environments (weighting 25%) Macro environment: The impact of recent legislation on
businesses
Macro environment: Business strategies
Business sectors and their environments
Business Ventures (weighting 25%) Management and leadership
Investment: Securities/Opportunities
Investment: insurance
Forms of ownership: Criteria for success and/or failure
Presentation and data responses
Business Roles (weighting 25%) Ethics and professionalism
Creative thinking and Problem-solving
Social Responsibility and Corporate Citizenship Corporate
Social Responsibility (CSR) & Corporate Social Investment (CSI)
Human rights, inclusivity and environmental issues
Team performance assessment Conflict management
Business Operations (weighting 25%) The human resources function
Quality of performance
The purpose of Business Studies

Business Studies will ensure that learners:
• acquire and apply essential business knowledge, skills and principles to productively and profitably conduct
business in changing business environments;
• create business opportunities, creatively solve problems and take risks, respecting the rights of others and
environmental sustainability;
• apply basic leadership and management skills and principles while working with others to accomplish
business goals;
• are motivated, self-directed, reflective lifelong learners who responsibly manage themselves and their
activities while working towards business goals;
• are committed to developing themselves and others through business opportunities and ventures;
• are able to secure formal employment, and are in a position to pursue sustainable entrepreneurial and self-
employment career pathways.
4 Business Studies | Grade 12 | Teachers Guide
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Time allocation for Business Studies in the Curriculum
The teaching time for Business Studies is 4 hours per week, per grade (Grade 10, 11 and 12) on the timetable.
Subject Time allocation per week (hours)

Home Language 4,5
First Additional Language 4,5
Mathematics 4,5
Life Orientation 2
Three Electives 12 (3 × 4h)
• Tips or advice on approaches to teaching different topics

• Includes a summary of the Annual Teaching plan as per the CAPS
Requirements to offer Business Studies as a subject

Resources to offer Business Studies as a subject are the responsibility of the school.
• Each learner should have:
w a textbook
w stationery
w other relevant resources.
• The teacher should have:
w a variety of textbooks for reference
w a Partnership’s Articles of Association
w Legislation, e.g. Companies Act, 71 of 2008, Employment Equity Act No. 55 of 1998, National Credit
Act No. 34 of 2005, Consumer Protection Act No. 68 of 2008, Basic Conditions of Employment Act No.
75 of 1997, Labour Relations Act No. 66 of 1995, Black Economic Empowerment Act No.53 of 2003,
Skills Development Act No.97 of 1998, Compensation for Occupational Injuries and Diseases Act No.
130 of 1993, Hire Purchase Act, Long-term Insurance Act No. 52 of 1998, Short-term Insurance Act No.
53 of 1998, etc.
− Memorandum of Incorporation (MOI) - new founding document of a company
− Specimen of contract forms
− Bank brochures
− Business and financial magazines
− Corporate Social Responsibility (CSR) Policy - any company
− The King Code of Governance for South Africa 2009
− Exam guidelines
− Previous NCS exam papers and memorandums
Introduction 5
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Annual Teaching Plan
Overview of Term 1
Page in
Weeks/
Layout Description Term Learner’s
Hours
Book
Topic 1 Micro environment
Unit 1.1 The Skills Development Act (SDA), 1998 (Act 97 of 1998) 1 4
1 week
Unit 1.2 The Labour Relations Act (LRA), 1995 (Act 66 of 1995) 10
Unit 1.3 The Employment Equity Act (EEA), 1998 (Act 55 of 1998) 13
Unit 1.4 The Basic Conditions of Employment Act (BCEA), 1997
17
(Act 75 of 1997) 1 week
Unit 1.5 The Compensation for Occupational Injuries and Diseases
22
Amendment Act (COIDA), 1997 (Act 61 of 1997)
Unit 1.6 The Broad-Based Black Economic Empowerment Act (BBBEE),
25
2003 (Act 53 of 2003), (amended in 2013)
1 week
Unit 1.7 The National Credit Act (NCA), 2005 (Act 34 of 2005) 29
Unit 1.8 The Consumer Protection Act (CPA), 2008 (Act 68 of 2008) 32
Topic 2 The human resources function
Unit 2.1 Recruitment 1 48
Unit 2.2 Selection 52
1 week
Unit 2.3 Induction 59
Unit 2.4 Placement 61
Unit 2.5 Salary determination 63
Unit 2.6 Fringe benefits 64
1 week
Unit 2.7 The implications of the legislations on the human
67
resources function
Topic 3 Ethics and professionalism
Unit 3.1 Understanding ethical and professional behaviour 1 84
Unit 3.2 Application of the King Code principles 1 87
1 week
Challenges posed by unethical and unprofessional
Unit 3.3 89
business practices
Topic 4 Creative thinking and problem-solving
Unit 4.1 Problem-solving 1 99
1 week
Unit 4.2 Creative thinking 1 108
Topic 5 Macro environment: Business strategies
Unit 5.1 The strategic management process and business strategies 1 117
1 week
Unit 5.2 Industrial analysis tools 129
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Overview of Term 2
Page in
Weeks/
Hours
Book
Topic 6 Business sectors and their environments
Unit 6.1 Business sectors 2 156
3 days
Unit 6.2 Business environments 159
Topic 7 Quality of performance
Unit 7.1 Quality and quality concepts 2 170
2 weeks
Unit 7.2 Total Quality Management (TQM) 178
Topic 8 Management & leadership
Unit 8.1 Distinguishing between management and leadership 2 199
Applications and impact of the five leadership styles in
Unit 8.2 2 weeks 2 203
the workplace
Unit 8.3 Understanding the three leadership theories 2 208
Topic 9 Investment: Securities
Unit 9.1 Functions of the Johannesburg Securities Exchange (JSE) 2 217
Unit 9.2 Factors that should be considered when making an 2
218
investment decision
3 weeks
Unit 9.3 Types of investment opportunities and risk factors 2 221
Unit 9.4 Forms of investments 2 224
Unit 9.5 Understanding simple and compound interest 2 232
Topic 10 Investment: Insurance
Unit 10.1 Insurance concepts 2 240
Unit 10.2 The principles of insurance 2 244
1 week
Unit 10.3 Advantages/Importance of insurance for businesses and
2 246
insurable risks
Topic 11 Team performance assessment and conflict management
Unit 11.1 Criteria for successful team performance 2 260
Unit 11.2 Five stages of team development 1 week 2 262
Unit 11.3 Conflict resolution techniques/steps 2 265
Annual Teaching Plan 7
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Overview of Term 3
Page in
Weeks/
Hours
Book
Topic 12 Human rights, inclusivity an environmental issues
Unit 12.1 Unpacking human rights 3 290
Unit 12.2 The meaning of diversity in the workplace 2 weeks 3 295
Unit 12.3 Understanding environmental factors 3 300
Topic 13 Social responsibility and corporate citizenship: CSR & CSI
Unit 13.1 Understanding social responsibility 3 307
Unit 13.2 Revising socio-economic issues 3 310
2 weeks
Unit 13.3 Understanding Corporate Social Responsibility and Corporate
3 313
Social Investment
Topic 14 Presentation & data responses
Unit 14.1 Factors that must be considered when preparing for a
3 322
presentation
1 Week
Unit 14.2 Areas of improvement in the next presentation 3 325
Unit 14.3 The impact/effectiveness of SIX visual aids 3 329
Topic 15 Impact of forms of ownership
Unit 15.1 Forms of ownership 3 337
Unit 15.2 Meaning of limited liability and unlimited liability 3 338
Unit 15.3 Criteria that will be used to evaluate the success and/or 2 weeks 3 339
failure of the forms of ownership
Unit 15.4 Forms of ownership and the contribution of the criteria to
3 341
the success and/or failure of each form of ownership
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How to use this Teacher’s
Guide
Introduction to the Textbooks

How the teacher’s Guide works
In this Teacher’s Guide, we focus on giving you all the information you may need for each lesson as well as
some general items that may assist you in your day-to-day teaching.
We will start by:
• Explaining how the textbooks work.
• Providing various best practices as per DBE guidelines.
• Providing general tips, links and ideas that you can use.
• After the general section, each topic will focus on the following:
• Teaching tips on presenting the topic, which includes how to introduce the topic and specific strategies to
teach the topic.
• Memoranda to activities.
How the Learner’s Book works

There is one learner’s book for each grade, which is available in printed format as well as electronic format. The
information in the textbook are written in learner-friendly topics, that are divided into units.
Teaching elements used in these textbooks are:
• Activities – provide opportunities to the learners to apply their skills and to gain maximum exposure to the
various questioning techniques used in Business Studies.
• Additional information – information that the teacher can use to explain certain concepts to the learners
that are not covered in the books.
• Animations and videos – used to explain specific concepts - only available in the e-books.
• Case studies – these can be used in class to support the information covered in the unit. The questions
should be discussed with the learners in class or can be given as an informal activity.
• Consolidation activities – a detailed self-assessment covering the most important information and skills
focussed on in the topic, and have specifically been created to aid learners in improving their examination
preparation.
• Did you know – boxes in the margin of the book containing information not covered in the main text, but
important for the learners to know.
• Enrichment activities – optional activities for the learners to help them to better understand the work.
• Exemplar activities – worked out examples that aid in the learners’ understanding of the concept/topic/
subject matter.
• Glossary – a summary of all keywords given at the end of the learner’s book.
• Keywords – definitions of important words or terms.
• Learning objectives – descriptions of what is covered in the chapter as relevant to CAPS.
• New words – these are new/difficult words that learners may not have encountered before. A brief
explanation of these words are given.
• QR codes – provide the learner with links to optional videos or additional reading material. Learners must
have access to a QR reader on their phones to read these codes.
• Take note boxes – these boxes require learners to pay special attention to certain aspects of the
curriculum/content/ activities/assessment. They add value to the content that is presented.
• Tip boxes – these boxes provide tips that learners could use when writing their exams and completing their
formal assessment tasks.
• Vocabulary – keywords and phrases the learner needs to understand before going through the text.
How to use this Teacher’s Guide 9
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Best practices – lessons for
the classroom
Planning
Although the curriculum or CAPS tells you WHAT you will be teaching, and in which SEQUENCE you should
teach it, it does not explain HOW you should teach it or which TEACHING STRATEGIES you should apply.
That is where proper and detailed planning of each lesson is required, breaking up the instruction into small
enough chunks of information so that the learners can link it to existing knowledge and cement the new
knowledge into their understanding and memory.
Planning addresses and integrates the following three key components:
• Learning objectives.
• Learning activities.
• Informal assessment to check for learner understanding.
Before the class During the class After the class

• Identify the learning • Sharing the lesson plan • Reflect on what worked
objectives. with the learners helps to well and why, and what
• Plan the specific learning keep them more engaged could be done differently
activities, assessments, and on track. in future.
and the sequence of
the lesson.
• Create a realistic timeline.
• Plan for a lesson conclusion.
When doing your planning, it is important that you look at the bigger picture.
The following provides guidelines for effective planning:
• Start with the end-goal in mind – what do the learners need to know and be able to do? Learning goals
and objectives.
• Identify curriculum resources – e.g. textbook – does the textbook provide everything needed to achieve
the learning goals or does one have to develop/find additional content or activities? What other resources
will be needed, e.g. previous examination papers, journal articles, posters, business magazines, newspaper
articles etc.
• Identify declarative knowledge – think about the concepts and ideas learners will need to know. What
are developmentally appropriate given the learners’ background knowledge and prior learning?
• Identify procedural knowledge – skills, strategies and processes. Procedural knowledge incorporates the
use of declarative knowledge.
• Create, find and select learning activities and assignments – activities are the instructional strategies
that allow the teacher and learners to interact with the content, skills, and materials. The goal of classroom
activities is to help learners to interact with new knowledge and skills, deepening learner understanding
and raising skill levels related to the learning goal(s). A wide variety of activities and consolidation activities
are provided in the learner’s book. Activities often require teacher coaching or guidance. When planning
classroom activities, start by selecting the instructional strategies that allow learners to process critical
information or vocabulary associated with the learning goals first, i.e. which subject terminology or concepts
will be introduced, and when?
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Exam preparation – Tips for the teacher
The following are tips that can be used by teachers to prepare learners for their examinations:
• Prepare ahead of time and make sure that you have an organised schedule covering all the revision work
throughout the year. Do not wait until the last minute and then try to cram everything in before the exam. This
will also give you the time to include a wider variety of activities to keep the learners’ interested in revision.
• Make sure that the learners know and understand what to expect in the exam. This does not only refer to the
content of the exam, but also to what is expected of them with each section of the exam. This means they
must know how to read and answer multiple choice questions, direct and indirect questions, essay questions, etc.
• Narrow the topics down as much as you can so that learners have a clear view of what to expect in the exam.
You can even give them a list of topics that they can focus on, based on the current examination guidelines.
A list helps them to focus as they can tick items off as they go through the work.
• Make sure that the learners do their classwork and homework regularly. A variety of classwork and
homework activities have been provided in the learner’s book. The more involved they are, the better they
will learn.
• Keep your revision activities interesting and use a variety of activity types such as quizzes and other review
games. It is here where you can use tools like Kahoot! or Google Quiz with great success. You can also have
learners write quizzes for each other as they engage much deeper with the content when they have to write
a quiz.
• Teach the learners exam techniques and the meaning of specific keywords that may be used in an exam.
• The table that follows provides the common action verbs used in Business Studies formal assessment tasks
and examinations:
Action verb What you need to do Example

Advise Provide businesses with advice on a particular Advise businesses on the actions regarded
aspect of the content. as non-compliance according to the Labour
Relations Act (LRA).
Analyse Separate, examine and interpret Analyse the role of SETAs in supporting the
successful implementation of the SDA.
Categorise Group concepts/ideas that are similar/have Identify the business strategy in each
the same characteristics/functions or belong statement and categorise it under the correct
together. main type of business strategy.
How should things be organised.
Classify Divide into groups or types so that things that Classify the business challenge according to
are similar, are in the same group the three business environments.
Comment on Write generally about. Comment on the effectiveness of interactive
whiteboards as a visual aid.
Compare Point out or show both similarities and Compare the differences between insurance
differences between factors or concepts. and assurance.
Note that stating the same fact in opposite
form, will not earn you another mark.
Contrast/ Explain the differences between certain Distinguish between quality control and
Distinguish concepts. quality assurance.
Define Give a clear meaning of the concept. Define the term insurance.
Describe State in words the main points of a structure Describe the strategic management process.
or process.
Diagram Make or draw a diagram. Draw a diagram on how the business can
apply the force-field analysis technique.
Differentiate Use differences to qualify categories. Differentiate between ordinary shares and
preference shares.
Discuss Give a clear, detailed description of the focus Discuss any three consumer rights according
topic. to the Consumer Protection Act (CPA).
Best practices – lessons for the classroom 11
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Action verb What you need to do Example
Elaborate Explain in detail. Elaborate on the roles of health and safety
representatives in protecting the workplace
environment.
Evaluate Express an opinion based on your findings. Evaluate the impact of a PowerPoint
presentation.
Examine Give a clear, detailed description of the focus Examine the previous presentation
topic. and suggest ways to improve the next
presentation.
Explain Give a clear, detailed description of the focus Explain the purpose of the Labour Relations
topic. Act.
Identify Name the essential characteristics. Identify the Act that is applicable in the
scenario above.
Illustrate Give examples to demonstrate or prove Determine whether the employee’s claim for
something. injuries is justifiable. Illustrate your answer by
quoting from the scenario.
Interpret Give the intended meaning of. Read the following scenario. Interpret the
scenario and compile a SWOT analysis.
Justify Give clear, detailed reasons for taking a Justify the importance of RAF as a type of
particular position. compulsory insurance.
List Write a list of items, with no additional detail. List any FOUR components of the PESTLE
analysis.
Motivate Provide a reason or justification for an answer Motivate your answer by quoting from the
or statement. scenario.
Name/ Mention Write a list of items, with no additional detail. Name three types of diversification strategies.
Outline Give a general summary. It should contain a Outline the advantages of unit trusts as a form
series of main ideas supported by secondary of investment.
facts. Show the organisation of the idea.
Order Provide a chronological or value-based answer Name the stages of team development by
by listing several items (terms or events in placing it in the correct order.
correct sequence).
Prove Show by using an argument or logic or fact Identify three causes of conflict. Prove your
that something is true. answer by quoting from the scenario.
Relate Show the connection between things, Relate the difference between compound
indicating how one causes or is like another interest and simple interest in tabular form.
Review Give a survey or summary in which you look Review the recruitment procedure in the
at the important parts or major points and scenario and suggest ways to improve the
criticise if necessary. process.
Comment on what is given.
State / Give Write down information without discussion. State four types of preference shares.
Suggest / Give your opinion and back it up with facts, Suggest ways in which the business can deal
Recommend reason or an explanation. with abuse of work time in the workplace.
Summarise Give a brief, condensed description of the Summarise six aspects that must be included
main ideas. Like developing an abstract. in an employment contract
Trace Follow the development, progress or history of Trace the development from BEE to BBBEE.
something, normally from the point of origin,
typically in chronological order.
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Did you know
Note that some action verbs include or refer to other action verbs.
Give the learners various ideas on how to study based on the different learning styles, i.e. visual (read and write),
auditory or kinaesthetic. There is a quick quiz that learners can do on their own to determine their learning styles:
Link: https://www.thestudygurus.com/learning-styles/
You can refer to the following link to get ideas on how the various types of learners should study to get the best results:
Link: https://www.gavilan.edu/tutor/documents/StudyTipsforDifferentLearningStyles_000.pdf
Learning styles
The term learning styles refers to the understanding that every learner learns differently.
• Visual learners learn best through what they see and should use graphs, diagrams, mind maps and other
graphical methods to learn.
• Auditory learners learn through what they hear and remember most things that teachers say in class. They
should use audio and video clips, or discuss or recite the information with someone.
• Read and write learners focus mostly on interacting with the text. They learn best by reading information
and writing it out in their own words. They also learn by answering quizzes in writing as well as from
annotated notes.
• Kinaesthetic learners learn by experiencing things and learn best by doing, using models, playing memory
games, etc. They also learn by writing things down.
Exam preparation – General tips for the learners

The following general notes and tips on how to prepare for exams can be printed and given to the learners.
• Make yourself a schedule/study timetable so that you will have enough time to study. Do not leave
everything until it is too late to study properly.
• Make sure that your study area is organised. Chaos distracts the brain from what it should be focussing on.
• Have all your materials ready before you begin studying – pencils, pens, highlighters, paper, etc.
• Study smaller chunks of information at a time. You will remember them better and for a longer period of
time. Trying to learn too much at one time will only result in a tired, unfocused and anxious brain.
• Use visual aids to study, for example, draw mind maps, flowcharts and diagrams to help you remember
things better or explain your answers and the reasoning for giving that answer to somebody else. A variety
of mind maps have been provided to learners at the end of every topic in the learner’s book to aid learners
in their studies.
• Focus on the core material as about 90% of most exams are likely to come from it. Going through old exam
papers will help you determine what this is. It will not only help you to study better, but it will also show you
how exam questions are formulated, and which types of questions are asked.
• Revise new information within 24 hours after you learned it. Any new information must be recapped,
reviewed and reinforced within 24 hours, otherwise you will lose 80% of what you learned.
• Organise study groups for the various subjects, but make sure that the group members are committed to
their studies.
• Make sure that you take regular breaks as your brain loses focus after a while. The optimal time to study
consists of periods of 2 hours, broken down into 25 minutes of studying followed by 5-minute breaks. Do
not think or do anything study-related during your breaks. Take a walk outside. A change of scenery will
stimulate your learning.
• Keep some healthy snacks to nibble on while you are studying. Natural, fresh and vitamin-rich food is good
for improving your concentration and memory.
• Drink a lot of water while you are studying to make sure that you do not dehydrate. Staying hydrated is
essential for your brain to work at its best.
• Plan the day of your exam beforehand, especially if you are studying at home. Make sure that you know
how long it will take you to reach the school during that time of the day and add some extra time to make
sure that you are not going to be late.
• Make sure that you sleep sufficiently (7 to 8 hours a night). Proper sleep turns what you learned (short term
memory) into long term memory.
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Study skills to boost learning
Mobile notes
Mobile notes are excellent tools for learning all the key concepts in the study guide. Mobile notes are easy to
make, and you can take them with you wherever you go:
• Fold a blank piece of paper in half. Fold it in half again. Fold it again.
• Open the paper. It will now be divided into 8 parts.
• Cut or tear neatly along the folded lines.
• On one side of each of these 8 bits of paper, write the basic concept.
• On the other side, write the meaning or the explanation of the basic concept.
• Use different colours and add pictures to help you remember.
• Take these mobile notes with you wherever you go and look at them whenever you can.
• As you learn, place the cards in 3 different piles:
w I know this information well.
w I’m getting there.
w I need more practice.
• The more you learn them, the better you will remember them.
Mnemonics
A mnemonic code is a useful technique for learning information that is difficult to remember. This is an example
of a word mnemonic using the word BALANCE where each letter of the word stands for something else:
• B – Best – doing your best is more important than being the best.
• A – Attitude – always have a positive attitude.
• L – Load – spread the load so you don’t leave everything to the last minute. Use a study timetable to plan.
• A – Attention – pay attention to detail. Only answer what is required.
• N – Never give up! Try, try and try again!
• C – Calm – stay calm even when the questions seem difficult.
• E – Early – sleep early the night before your exam. If you prepare well, you will not need to cram the
night before.
Mnemonics are code information and make it easier to remember. The more creative you are and the more you
link your ‘codes’ to familiar things, the more helpful your mnemonics will be.
The mind map on page 195 of the Grade 12 learner’s book demonstrates how mnemonics have been used to
summarise the quality indicators of each business function under the topic: Quality of performance.
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Mind maps
Mind maps work because they show information that we have to learn in the same way that our brains ‘see’
information. As you study, add pictures to each of the branches to help you remember the content. Make your
own mind maps as you finish each section.
A variety of mind maps have been included in this range of Grade 10 – 12 textbooks to aid learners in
summarising the different topics.
How to make your own mind maps:

• Turn your paper sideways (landscape) so your brain has space to spread out in all directions.
• Decide on a name for your mind map that summarises the information you are going to put on it.
• Write the name in the middle and draw a circle, bubble or picture around it.
• Write only key words on your branches, not whole sentences. Keep it short and simple.
• Each branch should show a different idea. Use a different colour for each idea. Connect the information
that belongs together. This will help build your understanding of the learning areas.
• Have fun adding pictures wherever you can. It does not matter if you can’t draw well.
On the day of the exam

This section is provided by the Department of Basic Education.
• Make sure you have all the necessary stationery for your exam, i.e. pens, pencils, eraser and calculator (with
new batteries).
• Go to the toilet before entering the exam room. You do not want to waste valuable time going to the toilet
during the exam.
• Use the 10 minutes reading time to read the instructions carefully. This helps to ‘open’ the information in
your brain. Follow the instructions provided in the question paper. Start with the question you think is the
easiest to get the flow going.
• Break the questions down to make sure you understand what is being asked. If you do not answer the
question properly, you will not get any marks for it. Look for the key words in the question to know how to
answer it.
• Try all the questions. As each question has some easy marks, make sure that you do all the questions in
the exam.
• Never panic, even if the question seems difficult at first. It will be linked to something you have covered.
Find the connection.
• Manage your time properly. Do not waste time on questions you are unsure of. Move on and come back if
time allows.
• Check weighting – how many marks have been allocated for your answer? Do not give more or less
information than is required.
• Write big, bold and clearly. You will get more marks if the marker can read your answer clearly.
BS Grade 12 TG.indb 15 2022/03/14 10:18:37

Struggling learners
You can support struggling learners by doing the following:
Scaffold learning tasks or activities

Scaffolding means that you break learning up into chunks and provide a tool or concrete structure for each.
This can reduce the cognitive load of the instruction and support the struggling learner.
One of the first things you can do is to choose different activities for different groups of learners. For example,
you can take a complex task and divide it into smaller sub-tasks. Together, these subtasks must achieve the
same goal as the big task. After doing this, grade the activities or tasks, with the big task having the highest
grading, and all the smaller tasks together having the same grading as the big task.
Have learners then choose whether they want to do the group of smaller activities or tasks or the one big
activity or task. Advise struggling learners to do the smaller ones first and then challenge them to try the big
one if they feel ready.
Getting the smaller activities or subtasks right could help the learners to feel competent. It allows them to
always feel like they are working at a level of challenge that is hard but right for them and that they can
accomplish. This will allow them to make much greater progress through learning environments.
Something to know: This principle is also true for games where gamers first try levels of lower difficulty and
achieve that before they move on to the next level. This is to make sure that they do not get frustrated and
leave the game.
Other ways to scaffold learning is to:
• Show and tell. Learners learn best by seeing rather than hearing about something.
• Tap into prior knowledge. You can do this by asking the learners to share their own experiences or ideas
about something.
• Give them time to talk about what they learned in a structured and controlled way.
• Teach them the vocabulary (subject jargon) before you teach them the content. You can do that by
introducing the words with photos or in context of things they know and are interested in. You can also use
analogies and metaphors to explain the words to them.
• Use visual aids like pictures, graphs, charts and diagrams, or graphic organisers such as mind maps, concept
maps or story maps.
• Check for understanding by discussing the content, pausing for a moment to let it sink in, and then asking a
well thought out question.
Build in autonomy (choice)

See the principles of gameful learning below.
• Let the learner choose which activities are most relevant, challenging and interesting to them.
Following are the principles of gameful learning:
• Autonomy is critical, and this is the first of three principles that come from gameful learning.
• The next principle is a sense of belonging, and a really good game environment makes you feel like you are
a part of something.
• The third principle is to support feelings of competence.
BS Grade 12 TG.indb 16 2022/03/14 10:18:37

Apply gameful learning
Motivation plays an important role in learning and to be self-motivated, learners must:
• be able to make meaningful choices over what they are doing (autonomy);
• be challenged by a task, but still feel that that they can succeed (competence); and
• feel connected to those surrounding them (belongingness).
Intrinsic
Motivation Competence
Belongingness Autonomy
Supporting these feelings could eventually lead to self-determination and learners becoming self-directed.
Other research-based strategies for motivating learners include:
• becoming a role model for learner interest;
• getting to know learners;
• using examples freely;
• using a variety of learner-active teaching activities;
• setting realistic performance goals;
• placing appropriate positive emphasis on testing and grading;
• being free with praise and constructive criticism; and
• giving learners as much control over their own learning as possible (Bain, 2004; Nilson, 2003; DeLong &
Winter, 2002). This element is also important when thinking about authenticity. If learners can learn ideas
that are connected to their lives and produce representations of their knowledge in ways that matter, they
are more motivated.
Gameful learning also relates to personalised learning that supports the notion that children learn best when
their individual differences are taken into consideration. Personalised learning is based on the following three
principles (Microsoft, 2014):
• It provides multiple means of representation.
• It provides multiple means of action and expression.
• It provides multiple means of engagement.
BS Grade 12 TG.indb 17 2022/03/14 10:18:37

Another important principle of gameful learning is the freedom to fail (as seen with videogames): you can
experiment, take risks and try things you have never done before, fail miserably…and do it again and again
until, after much practice, you get it right. Unfortunately, this will not work in all classrooms as it requires a
significant amount of grading to manage, and it can hinder the ability to keep a cohort on a specific content
progression. But when you can structure learning opportunities in this way, learners’ motivation to engage
increases, and their learning outcomes improve.
Learner experience
Learners:
• respect and value teachers that are positive, enthusiastic about the subject, supportive and have access to a
wide range of teaching aids.
• enjoy engaging, interactive and communicative teaching methods.
• value choice and classes that encourage independent learning and learner autonomy.
• want to understand what they are expected to learn – what they are learning, why they are learning it and
what quality work looks like.
• enjoy things that interest them.
BS Grade 12 TG.indb 18 2022/03/14 10:18:38

General tips, links and ideas
This section gives you various tips, ideas and links to interesting and/or informative websites.
Kahoot!
Kahoot! is a free eLearning tool that can be used to create fun learning games, quizzes, surveys or discussion
questions, called a kahoot, in minutes. This can be used to teach, reinforce, assess or share information
with learners.
Link: https://kahoot.com/
You can use Kahoot! in your classroom for the following reasons:
• As a class starter or ice breaker.
• To help learners with keywords, terminology or definitions.
• To assess learners’ understanding of a subject before or after they learned about it.
• To zero in on the needs of individual learners by getting a detailed report of which learner missed,
which questions.
• To direct classroom activity by organising small groups.
• To review for a test or exam.
• To end a class with Kahoot notes, a quick quiz or formative assessment.
• By encouraging learners to create their own kahoots, the content is reinforced.
• To help learners learn information in a sequential order.
General tips, links and ideas 19
BS Grade 12 TG.indb 19 2022/03/14 10:18:38

How to use Kahoot!
It is easy to use Kahoot!
• To get started, go to the https://kahoot.com/ website and create a free account.
• Use a public kahoots or create your own.
• By watching the following video, you can learn how to use Kahoot!
• Link: https://www.youtube.com/watch?v=de7G0WioH8E
Google Quiz
The Google Quiz is an online assessment tool that will self-mark learners’ attempts and give feedback to
teachers and learners.
The quiz can be done on desktop or mobile computers and learners need to have access to the Internet.
Teachers will provide learners with the link to the quiz (as a URL or QR code).
Something to know
• Learners must have a registered Gmail account.
• Learners must have Internet access (It can be set to sync offline).
The platform allows for:
• Learners getting instant feedback to the answers.
• Teachers getting a full report on the performance of the learner.
Link: forms.google.com
• To learn more on how to use google forms to create quizzes, watch the following video.
Link: https://www.youtube.com/watch?v=Pdt8Vv7-3Xk
• For a more detailed explanation, you can use the following link.
Link: https://www.youtube.com/watch?v=ayvhVM2BMv0
• To create a new quiz:
1. Go to forms.google.com.
2. Click on Blank to open a new form.
• To create a new quiz from Google Drive:

w Click New, hover over More and click on the Google Forms arrow.
w Click on From a template.
w Scroll to the bottom and click Blank Quiz.
BS Grade 12 TG.indb 20 2022/03/14 10:18:38

To follow a step-by-step tutorial on how to create a quiz, go to the G Suite Learning Centre.
Link: https://gsuite.google.com/learning-center/products/forms/quizzes-get-started/#!/
Link: http://teachers.tech/self-grading-quizzes-google-forms-google-classroom/
Puzzlemaker
You can use the following link to create crossword puzzles step by step.
Link: http://puzzlemaker.discoveryeducation.com/CrissCrossSetupForm.asp
Jigsaw assessment technique

The cooperative learning strategy known as the jigsaw technique helps learners to create their own learning.
To facilitate this, teachers arrange learners in groups. Each group is assigned to research a different topic. Group
members then join with members of other groups and share the research about the information.
Afterwards, learners must complete a post-assessment questionnaire.
Gradecraft
Gameful learning is an educational tool based on the principles that work so well in games, applied to the
learning environment. It is about taking elements from games and applying them to non-game settings.
To learn more about the principles upon which gameful learning is based, you can go to the following website:
Link: Gameful pedagogy – http://www.gamefulpedagogy.com/
Following are some of the tools you can use from Gradecraft.
BS Grade 12 TG.indb 21 2022/03/14 10:18:38

Link: https://www.gradecraft.com/
To sign up with Gradecraft, click on the pink button.
Although it is not a free tool, you can try it out on a free trial base.
BS Grade 12 TG.indb 22 2022/03/14 10:18:40

TOPIC 1 The impact of recent
legislation on businesses
Teaching tips:
How to introduce the topic Specific strategies to teach/approach the topic
• Emphasise that recent legislation refers to Acts that • Key words such as ‘sector skills plan’, ‘grants’,
were enacted after 1994, the year in which South ‘monitor’, ‘learnerships’ and ‘training material’ can
African became a democracy. be used to assist learners to formulate meaningful
• Provide context on why these legislations were statements on the role of SETAs.
established/ promulgated. • Emphasise that each Act has a purpose, impact,
• List the ACTs that will be covered actions regarded as non-compliance, consequences
• Purpose of the Acts are two-fold: for non-compliance and ways in which business
– transform the workplace and economy can comply.
– address the inequalities prior to 1994 in the • Teach learners to write the correct and full name of
workplace and economy each provision of the BCEA.
• Provide learners with a mind-map of the sub-topics • Address the Labour Relations Act within the
that will be covered. framework of the relationship between the employer
• Provide learners with a glossary of concepts that will organisation and trade unions and not through the
be covered in this topic. functions of the trade unions.
• It must be stressed that the main aim of the LRA is
to promote labour peace in the workplace rather
than to focus on lockouts and strikes.
• The purpose and the impact of the Employment
Equity Act must be understood by learners before
dealing with the ways in which businesses can
comply with this Act.
• The difference between the rights of consumers in
terms of the Consumer Protection Act (CPA) and the
National Credit Act (NCA) must be clearly explained.
• This can be achieved by comparing these rights in a
tabular format.
• Short class tests must be used to determine progress
before moving to subsequent sections.
• Source-based and indirect questions must be
administered to address this topic during the
academic year.
Topic 1 The impact of recent legislation on businesses 23
BS Grade 12 TG.indb 23 2022/03/14 10:18:40

Important tips for the topic Other ways of assessing the topic
• It should be clearly explained that SETAs are the • Consult the following past NSC Question Papers for
implementers of the Skills Development Act, as they Section B and C type questions
devise systems for its operation. – May/June 2021 P1 Question 2.5 – scenario
• Learners must be made aware that SETAs do not on NCA
provide training. – Nov 2020 P1 Question 2.5 – scenario on LRA
• A clear distinction must be made between COIDA, – Nov 2020 P1 Question 4.4 –scenario on COIDA
which deals with workplace injuries and diseases, – Nov 2020 P1 Question 5 – Essay on BCEA
and OHSA, which deals with safety in the workplace. – Nov 2019 Question 2.3 – Identify leave
• Learners must be reminded that OHSA was covered provisions of BCEA
in Grade 11 and that they must learn and use the – Nov 2019 Question 2.6 – scenario on BBBEE
correct words when requested to give the full name – Nov 2019 Question 6.2 – scenario on COIDA
of COIDA.
– June 2019 Question 2.3 – Identify consumer
• The differences between the Consumer Protection rights
Act and the National Credit Act must be clearly
– June 2019 Question 2.4 – scenario on NCA
outlined and explained.
– June 2019 Question 6.1 – identify the provisions
• This should afford learners a better understanding of
of the BCEA
consumer rights as they apply to the CPA and NCA.
– June 2019 Question 7 – essay on EEA
• The rationale behind the pillars of BBBEE is to ensure
– Nov 2018 Question 2.6 – scenario on EEA
full participation of the previously disadvantaged
– Nov 2018 Question 7 – essay on CPA and NCA
people in the economy of the country.
– May/June 2018 Question 2.3 – identify the pillar
• Learners must be informed that all eight Acts are
of BBBEE
aimed at redressing past imbalances.
– May/June 2018 Question 2.5 – scenario
• As such, the phrase ‘previously disadvantaged
on COIDA
people’ is likely to be used in all these Acts.
– Feb/March 2018 Question 2.4 – scenario
on COIDA
– Feb/March 2018 Question 7 – essay on CPA
and NCA
• Create informal 10 mark quizzes/tests on the
key terms on the previous day’s content – in that
way you expose your learners to continuous
consolidation.
• Ensure that learners practice writing various
examples of essays to ensure optimum exposure.
Memoranda to activities
| Activity 1.1 Learner’s Book page 8 – 9
QUESTION 1
1.1 Multiple choice
1.1.1 F 
1.1.2 E 
1.1.3 B 
1.1.4 C 
1.1.5 I 
(5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
BS Grade 12 TG.indb 24 2022/03/14 10:18:40

QUESTION 2
2.1 Skills Development Act (SDA)
2.1.1 Roles of SETAs from the scenario
– They have established that SETAs develop skills plans for the various economic sectors. 
– SETAs also promote various learnerships.
NOTE: 1 Mark the first TWO (2) answers only.
2 Only award marks for responses that are directly quoted from the scenario.
Any (2 × 1) (2)
2.1.2 Other roles of SETAs in supporting the implementation of the SDA
– Register various learnerships and learning programmes. 
– Approve the workplace skills plans and annual training reports submitted by businesses. 
– Develop skills plans that are in line with the aims of the National Skills Development Strategy (NSDS). 
– Promote learnerships and learning programmes by correctly identifying the best workplaces for practical
work experience. 
– Any other relevant answer related to other roles of SETAs in supporting the implementation of the SDA.
NOTE: Do not award marks for responses that were quoted in QUESTION 2.1.1.
Max (6)
2.1.3 Meaning of learnerships
– Theoretical/Practical training opportunities that leads to a recognised occupational qualification. 
– Structured learning programme that is completed during work hours  for a specified period of time. 
– Includes a training course with learning material as well as practical work experience. 
– Agreement between a learner/trainee, employer and a training provider. 
– May include employment for a specified period after the learnership is completed. 
– Any other relevant answer related to the meaning of learnerships.
Max (4)
2.1.4 Impact of the SDA
Positives/advantages
– Increases the number of skilled employees in scarce skilled areas. 
– Improves productivity in the workplace because employees are empowered with current training
demands and are more knowledgeable. 
– Increases global competitiveness of South African businesses, as more employees are trained with
upgraded, relevant and scarce skills. 
– Improves the return on investment (ROI)  in education and training. 
– Increases investment in education and training in the South African labour market. 
– Improves the delivery of services of businesses, as employees are working more optimally. 
– Any other relevant answer related to the positives/advantages of the SDA on businesses.
AND/OR
Negatives/disadvantages
– The implementation of the SDA is time-consuming, expensive, prescriptive and administratively
burdensome. 
– The Skills Development Levy (SDL) places an additional burden on financially struggling businesses. 
– The SDA initiative of the government may not always be supported by all businesses. 
– Businesses find it difficult to monitor/control the implementation of this Act. 
– Productivity in the workplace may decline, as employees have to attend learnerships during
work hours. 
– Only companies/businesses with a staff payroll over R500 000 per annum can claim the SDL. 
– Any other relevant answer related to the negatives/disadvantages of the SDA on businesses.
Max (6)
BS Grade 12 TG.indb 25 2022/03/14 10:18:40

2.1.5 Ways in which businesses can comply with the SDA
– Display a summary of the SDA in the business where it is visible to all employees. 
– Provide opportunities to all employees to improve their skills. 
– Assess the skills of employees to determine/ascertain the areas in which skills development are needed. 
– Promote and encourage employees to improve their skills and to actively engage in learnerships.
– Employers who collect PAYE (Pay As You Earn tax) should register with SETA. 
– Employers whose payroll exceeds R500 000 (half a million rand) per annum should pay a 1% of it over
to SETA. 
– Submit a workplace skills plan and provide evidence that it was implemented. 
– Any other relevant answer related to ways in which businesses can comply with the SDA.
Max (8)
Breakdown of marks
Question 2 Marks
2.1.1 2
2.1.2 6
2.1.3 4
2.1.4 6
2.1.5 8
TOTAL 26
QUESTION 1
1.1 Complete the statements
1.1.1 Commission for Conciliation, Mediation and Arbitration (CCMA) 
1.1.2 Workplace forum 
1.1.3 Lockout 
1.1.4 Labour Relations Act 
1.1.5 Collective bargaining 
(5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 2: BUSINESS ENVIRONMENTS (LABOUR RELATIONS ACT)

2.1 Introduction
– The LRA is an enabling framework that regulates the relationship between employees and employers, and promotes
sound relations between trade unions and employer organisations. 
– LRA promotes collective bargaining at the workplace sectoral level.
– Both the employers and employees need to be knowledgeable about their rights in terms of the LRA.
– The LRA impacts businesses both positively and negatively. 
– Businesses must gaurd against actions that are unjust, unfair, illegal and show prejudice towards employees in the
context of violating the Act.
– Penalties/consequences for non-compliance refer to the legal charges businesses may face for not complying with
the particular Act. 
– Businesses may face heavy penalties for non-compliance with the LRA. 
– Any other relevant introduction related to the rights of the employers and employees in terms of the LRA/impact of
the LRA on businesses/actions that are regarded as non-compliance by the LRA/penalties for non-compliance with
the LRA.
Any (2 × 1) (2)
BS Grade 12 TG.indb 26 2022/03/14 10:18:40

2.2 Rights of employers and employees in terms of the LRA
Rights of employers:
Employers have the right to:
– recourse a lockout during periods when employees engage in unprotected/illegal/wildcat strikes/labour action. 
– form employer organisations. 
– dismiss employees who engage in unprotected strikes/ misconduct such as violence or intimidation during a
strike action. 
– form bargaining councils for the purpose of collective bargaining. 
– not remunerate employees who participate in protected strikes and for work that was not completed during
protected strikes. 
– Any other relevant answer related to the rights of employers in terms of the LRA.
Submax (6)
Rights of employees:
Employees have the right to:
– Join a trade union of their choice. 
– Establish a workplace forum where a business has 100 or more employees to resolve work-related issues. 
– Request trade union representatives to represent and assist employees in the grievance procedure/disciplinary
hearing. 
– Embark upon legal strikes as a remedy for grievances. 
– Trade union representatives may take reasonable time off work with pay, to attend to trade union duties. 
– Refer unresolved workplace disputes to the Commission for Conciliation, Mediation and Arbitration (CCMA). 
– Refer unresolved CCMA disputes to the Labour Court for an appeal. 
– Any other relevant answer related to the rights of employees in terms of the LRA.
Submax (6)
Max (12)
2.3 Impact of the LRA on businesses
– Ensures the participation of all parties in the collective bargaining process, which reduces conflict in
the workplace. 
– Protects the rights of businesses and employer organisations  in labour related issues. 
– Promotes quick and less expensive labour dispute resolutions. 
– Protects employers who recourse lawful lockouts when negotiations between parties fail and when employees
participate in strike action. 
– Prevents unfair discrimination in the workplace, because equal opportunities are promoted for
all employees. 
– Provides sound dispute resolution through consensus between organised labour, businesses and
the state. 
– Any other relevant answer related to the positives/advantages of the LRA on businesses.
AND/OR
– The LRA may reduce global competitiveness of businesses due to lower workplace productivity. 
– The business may lose its competitive advantage because important information is often disclosed to trade unions
during collective bargaining which may be leaked to competitors. 
– The LRA results in decreased profitability of businesses because of a decline in productivity and sales. 
– Productivity may decrease significantly if employees engage in trade union related activities during
work hours. 
– The implementation of the LRA may be very costly and time-consuming, especially the dispute
resolution process. 
– The employment of legal specialists and labour consultants increases the costs of the business. 
– Any other relevant answer related to the negatives/disadvantages of the LRA on businesses.
Max (14)
BS Grade 12 TG.indb 27 2022/03/14 10:18:40

2.4 Actions that are regarded as non-compliance by the LRA
– Dismissing employees unfairly or illegally. 
– Preventing employees from forming and joining trade unions. 
– Refusing to provide trade union representatives leave to attend to trade union matters. 
– Preventing employees from participating in legal strikes. 
– Dismissing employees who participate in legal strikes. 
– Forcing employees to give up their trade union membership and representation. 
– Any other relevant answer related to actions that are regarded as non-compliance by the LRA.
Max (10)
2.5 Penalties for non-compliance with the LRA
– Businesses that do not comply with the LRA may receive a compliance order from the Labour Court, that forces the
business to comply with the LRA. 
– Businesses who neglect to comply with the LRA may receive large fines, should they fail to meet the agreements
reached during the dispute resolution process. 
– Businesses may be forced to enter into a dispute resolution process if they do not willingly participate. 
– The business’s licence may be revoked which may prevent the business from continuing any form
of operations. 
– Businesses that fail to comply with the LRA may face financial costs such as legal fees/CCMA fees. 
– Any other relevant answer related to penalties businesses may face for not complying with the LRA.
Max (10)
2.6 Conclusion
– The LRA advances social justice/labour peace/economic development, which ensures that the workplace maintains
the basic rights of both employers and employees. 
– Businesses should put necessary strategies in place to minimise the negative impact of the LRA on their operations. 
– Through effective implementation of the LRA, fair labour practices can be promoted in the workplace. 
– The correct implementation of the LRA results in improved efficiency in business operations and minimal disruptions. 
– Businesses need to implement effective ways of improving compliance with the LRA in order to avoid heavy penalties. 
– Any other relevant conclusion related to the rights of the employers and employees in terms of the LRA/impact of
the LRA on businesses/actions that are regarded as non-compliance by the LRA/penalties for non-compliance with
the LRA.
Any (1 × 2) (2)
[40]
Question 2: Breakdown of mark allocation
DETAILS MAXIMUM TOTAL
2.1 Introduction 2
2.2 Rights of employers and employees in terms of the LRA 12
2.3 Impact of the LRA on businesses 14 Max
2.4 Actions that are regarded as non-compliance by the LRA 10 32
2.5 Penalties businesses for non-compliance with the LRA 10
2.6 Conclusion 2
INSIGHT
Layout 2
Analysis/Interpretation 2
8
Synthesis 2
Originality/Examples 2
TOTAL MARKS 40
LASO – For each component:
Allocate 2 marks if all requirements are met.
Allocate 1 mark if some requirements are met.
Allocate 0 marks where requirements are not met at all.
BS Grade 12 TG.indb 28 2022/03/14 10:18:41

QUESTION 1
1.1 Multiple choice questions
1.1.1 C 
1.1.2 D 
1.1.3 A 
1.1.4 B 
1.1.5 A 
(5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 2
2.1 Purpose of the EEA
– Ensures equal representation of all population groups of South Africa in the workplace through the effective
promotion and implementation of affirmative action. 
– Advocates that employees who do work of the same or equal value must be paid equally. 
– Promotes equal opportunity and fair treatment for all workers in the workplace. 
– Prevents discrimination on the grounds of gender/race/disability in the workplace. 
– Protects employees from victimisation in the context of exercising their rights as outlined in the EEA. 
– Provides the possibility for workers to refer unresolved issues to the CCMA. 
– Any other relevant answer related to the purpose of the EEA.
Max (6)
2.2 Impact of the EEA on businesses
– Promotes the implementation of affirmative action measures to redress the various imbalances in employment. 
– Systematically prevents unfair discrimination as it ensures that the workforce is representative of the
demographics of the country. 
– Promotes equal opportunities and fair treatment for all workers in the workplace. 
– Encourages diversity in the business by employing people from various racial backgrounds. 
– Encourages consultation between employers and employees. 
– Provides all employees with an equal opportunity during selections, appointments and promotions in
the workplace. 
– Any other relevant answer related to the positives/advantages of the EEA on businesses.
AND/OR
– The implementation of the EEA is time-consuming, expensive, prescriptive and administratively burdensome
because employment equity reports must be submitted to the Department of Labour every two years. 
– The training costs of the business increases, as employees need to be correctly trained regarding the EEA. 
– Employment Equity appointments may cause conflict in the workplace as some employees may not respect the
knowledge, skills, qualifications and experiences of the EE appointment. 
– Businesses sometimes appoint unsuitable and unqualified candidates into an EE position in order to meet the
requirements of the employment equity plan. 
– Businesses find it difficult to make appointments because of the unsuitability of the candidate, which results in the
position not being filled. 
– Businesses must submit employment equity plans and compliance certificates before business can be conducted
with the state. 
– Any other relevant answer related to the negatives/disadvantages of the EEA on businesses.
Max (8)
BS Grade 12 TG.indb 29 2022/03/14 10:18:41

2.3 Employment Equity Act
2.3.1 Non-compliance with the EEA from the scenario
– The findings discovered that the workforce is not representative of the demographics of South Africa. 
– CW does not implement affirmative action measures. 
– A summary of the EEA is not displayed at the business. 
Any (2 × 1) (2)
2.3.2 Other actions regarded as non-compliance with the EEA
– Denying people access to the workplace, based on the grounds of any form of discrimination such as
gender, race, culture, religion, language and gender. 
– Treating workers unfairly and incorrectly promoting affirmative action in the workplace. 
– Refusing to employ young women because they would choose to have children in the future. 
– Conducting HIV testing unless the testing is justified by the Labour Court. 
– Refusing to employ a person because of strong religious/cultural beliefs, or because of a disability. 
– Harassing and victimisation of an employee in any form are regarded as discriminatory according to
the EEA. 
NOTE: 1 Do not award marks for responses quoted from the scenario.
Max (6)
2.3.3 Penalties/Consequences for non-compliance with the EEA
– Businesses that do not comply with the EEA, may receive a compliance order from the Labour Court, that
forces the business to comply with the EEA. 
– Businesses that do still not comply after the compliance order has been issued may then be charged/
prosecuted by the Labour Court for non-compliance. 
– Businesses who neglect to comply with the EEA may receive large fines depending on the degree of non-
compliance, especially in the context of fronting. 
– The Department of labour may prevent non-compliant businesses from conducting business with the
government, especially in the context of government tenders. 
– Labour inspectors can visit the business and conduct interviews with employees to determine whether
information supplied on the employment equity plans are true or have been falsified. 
– Any other relevant answer related to the penalties/consequences that businesses may face for non-
compliance with the EEA.
Max (6)
Breakdown of marks
Question 2 Marks
2.1 6
2.2 8
2.3.1 2
2.3.2 6
2.3.3 6
TOTAL 28
BS Grade 12 TG.indb 30 2022/03/14 10:18:41

| Activity 1.4 Learner’s Book page 21
QUESTION 1
1.1 Provisions of the BCEA from given statements
1.1.1 Overtime 
1.1.2 Child and forced labour 
1.1.3 Termination of employment 
1.1.4 Meal breaks and rest periods 
1.1.5 Parental leave 
(5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 2: BUSINESS ENVIRONMENTS (BASIC CONDITIONS OF EMPLOYMENT ACT)

2.1 Introduction
– The BCEA sets out the minimum conditions that ensure fair labour practices and human resources practices in
the workplace. 
– The BCEA makes provision for conditions of employment which include hours of work, termination of employment
and child and forced labour that employers must adhere to. 
– Businesses must have a clear understanding of the negative and positive impact of the BCEA/how the BCEA will
negatively or positively impact on their operations. 
– Businesses must explore various ways to ensure compliance with the BCEA. 
– Any other relevant introduction related to the purpose/provisions/impact/compliance of the BCEA.
Any (2 × 1) (2)
2.2 Purpose of the BCEA
– Outlines clear terms and conditions of employment for employers and employees. 
– Regulates and promotes the right to fair labour practices as outlined in the Constitution of South Africa. 
– Provides minimum requirements/standards for the creation of employment contracts. 
– Advances the economic development and social justice of employees. 
– Adheres to the rules and regulations set out by the International Labour Organisation. 
– Regulates the variations of the basic conditions of employment. 
– Any other relevant answer related to the purpose of the BCEA.
Max (12)
2.3 Provisions of the BCEA
Hours of work
– Employees are not allowed to work  for more than 45 hours per week. 
– Employees may work 9 hours a day if they work five days or less per week. 
– Employees may work 8 hours a day if they work more than five days a week. 
– Night work performed by employees after 18:00 and before 6:00 the next day should be done by mutual
agreement and employees must be compensated by allowance/reduction of work hours. 
– Any other relevant answer related to hours of work as a provision of the BCEA.
Submax (4)
Termination of employment
– An employment contract may only be terminated following 1 week’s notice, if the employee has been employed
for 6 months or less. 
– A minimum of 4 weeks’ notice must be given to the business, if the employee has been employed for a year
or longer. 
– The employee must be given formal notice in writing if the employer has terminated the contract, similarly, the
employee must give the employer formal notice in writing for terminating the contract. 
– Any other relevant answer related to termination of employment as a provision of the BCEA.
BS Grade 12 TG.indb 31 2022/03/14 10:18:41

Child and forced labour
– It is illegal to employ a child younger than 15 years of age in South Africa. 
– It is also illegal to force an employee to work. 
– Businesses may employ children over the age of 15 years, if employment is not harmful to their welling-being/
health/ /education/moral and social development/ minors under the age of 18 may not do dangerous work/work
meant for an adult. 
– Any other relevant answer related to child and forced labour as a provision of the BCEA.
Submax (4)
Max (12)
2.4 Impact of the BCEA on businesses
– Creates/Establishes an enabling framework of acceptable employment practices, for example, work hours, leave,
legalities of employment contracts etc. 
– Outlines the rules and regulations and provide clear and specific guidelines for employers to deal with
employment issues. 
– Encourages consultation between employers and employees in the workplace. 
– Outlines the minimum/basic requirements for employment contracts. 
– Specifies work hours to prevent exploitation of employees. 
– Workers are permitted/allowed to consult labour unions/trade unions in cases where the BCEA conditions
are violated. 
– Any other relevant answer related to the positives/advantages of the BCEA on businesses.
AND/OR
– The implementation of the BCEA is time-consuming, expensive, prescriptive and administratively burdensome,
especially the drafting of formal/legal contracts. 
– The training costs of businesses may increase because employees have to be trained according to the BCEA and
businesses often have to employ legal specialists. 
– Businesses often regard employment contracts as a negative aspect and sometimes do not implement the
requirements which results in non-compliance. 
– Employers and managers may not force employees to work more than 45 hours per week, which may result in a
reduction in productivity. 
– Employers cannot higher cheap labour, and therefore cannot exploit employees. 
– Businesses are forced to comply with the various legal requirements of BCEA, which directly increases the labour
costs of businesses. 
– Any other relevant answer related to the negatives/disadvantages of the BCEA on businesses.
Max (12)
2.5 Compliance with the BCEA
– Remunerate/pay employees for working overtime as stipulated in the provisions of the BCEA. 
– Ensure that employees do not exceed the stipulated working hours 45 hours per week. 
– Provide maternity leave for pregnant employees. 
– Ensure that the employment contracts do not contravene any aspect of the requirements of the BCEA. 
– Allow employees to take off the required amount of sick leave i.e 6 weeks in a 3 year cycle for sick employees. 
– Refrain from employing children under the age of 16 years, as this is illegal. 
– Any other relevant answer related to ways in which businesses can comply with the BCEA.
Max (10)
2.6 Conclusion
– Businesses must keep abreast of amendments made regarding the variations on the BCEA provisions by the Minister
of Labour. 
– Businesses must take advantage of the positive impact of the BCEA and put measures in place to minimise the
negative impact. 
– Businesses should make all attempts to comply with the BCEA to avoid facing penalties/consequences for non-
compliance. 
– Any other relevant conclusion related to purpose/provisions/impact/compliance of the BCEA.
Any (1 × 2) (2)
[40]
BS Grade 12 TG.indb 32 2022/03/14 10:18:41

2.1 Introduction 2
2.2 Purpose of the BCEA 12
2.3 Provisions of the BCEA 12
– Hours of work
– Leave Max
– Termination of employment 32
2.4 Impact of the BCEA on businesses 12

2.5 Compliance with the BCEA 10
2.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
QUESTION 1
1.1 COIDA
1.1.1 Identification of Act
Compensation for Occupational Injuries and Diseases Amendment Act (COIDA), 1997 (Act 61 of 1997)/COIDA 
(1 × 2) (2)
1.1.2 Penalties/consequences for non-compliance with COIDA
– Businesses that do not comply with COIDA may receive a compliance order from the Labour Court, that
forces the business to comply with the COIDA. 
– Businesses who neglect to comply with COIDA may receive large fines for refusing to lodge claims
and may be even provided with a jail sentence/imprisonment, that is dependent on the severity of the
non-compliance. 
– Businesses can be forced to make large payments if they did not implement the necessary precautions to
reduce accidents/fatalities and to promote health and safety in the workplace. 
– Businesses may be forced to pay any recovery costs required by the compensation fund. 
– Employees may take the businesses to court for not registering with Commissioner of the
Compensation Fund. 
– Any other relevant answer related to the penalties for non-compliance with COIDA.
Max (8)
1.2 Impact of COIDA on businesses
– Promotes health and safety in the workplace. 
– Creates an enabling framework for acceptable employment practices/safety regulations. 
– Covers all employees in the workplace, if both parties/employers and employees  meet all the necessary safety
provisions as outlined by COIDA. 
– Supplies administrative guidelines/mechanisms for dealing with and processing claims. 
– Provides employees with financial/monetary compensation for any injury/disability/illness that results from
performing workplace duties. 
BS Grade 12 TG.indb 33 2022/03/14 10:18:41

– Protects employees from financial burden should an accident occur in the workplace, provided that the employer
is not guilty of negligence and have made contributions to the Compensation Fund. 
– COIDA does provide compensation for domestic workers. 
– Any other relevant answer related to the positives/advantages of COIDA on businesses.
AND/OR
– The implementation of COIDA is time-consuming, expensive, prescriptive and administratively burdensome,
especially the lengthy claiming processes/procedures. 
– Employers have to register all their employees in order to make annual contributions to COIDA, which may result
in cash flow problems for businesses. 
– Implementation processes/procedures required by the Act may be expensive and place an additional financial
burden on struggling businesses. 
– Employers may be forced to pay heavy penalties if they are found guilty of negligence, or for not enforcing
safety measures. 
– South Africans who are temporarily/permanently employed in foreign countries are not covered by COIDA. 
– COIDA does not cover military workers. 
– Any other relevant answer related to the negatives/disadvantages of COIDA on businesses.
Max (10)
Breakdown of marks
Question 1 Marks
1.1.1 2
1.1.2 8
1.2 10
TOTAL 20
QUESTION 1
1.1 BBBEE pillars from given statements
1.1.1 Ownership 
1.1.2 Skills development 
1.1.3 Management control 
(3 × 2) (6)
Breakdown of marks
Question 1 Marks
1.1 6
TOTAL 6
QUESTION 2
2.1 BBBEE
2.1.1 Difference between BEE and BBBEE from the scenario
BEE BBBEE
It was highlighted that BEE is a policy that is not Businesses are compelled to comply with the
enforced by the government.  BBBEE Act. 
NOTE: 1 The answer does not have to be in tabular format.

2 Only award marks for responses that are quoted from the scenario.
(2 × 1) (2)
BS Grade 12 TG.indb 34 2022/03/14 10:18:41

2.1.2 Distinction between BEE and BBBEE
BEE BBBEE
Benefitted only a few previously disadvantaged Encourages a wider group of previously
people in the economy.  disadvantaged people which includes black
women, people who are physically challenged,
youth, and people in rural areas to participate in
the economy. 
Resulted in few previously disadvantaged individuals Aims to distribute the country’s wealth across a
sharing in the wealth of the economy.  broader spectrum of society. 
Focused only on three pillars that did not Focuses on five pillars which includes all sectors
include all previously disadvantaged people.  of the society, especially previously
disadvantaged people and previously
disadvantaged communities. 
Any other relevant answer related to the Any other relevant answer related to the
description of BEE. description of BBBEE.
Submax (2) Submax (2)

2 The difference does not have to link but they must be clear.
3 Do not allocate marks for differences provided in the scenario.
4 Award a maximum of TWO (2) marks if the differences are not clear/mark either
BEE or BBBEE only.
Max (4)
2.1.3 Implication of the BBBEE pillars on businesses
a. Enterprise and supplier development (ESD)
– Businesses must be encouraged to invest in and support black owned Small Medium and Micro
Enterprises (SMMEs). 
– Businesses must create jobs as ESD promotes and supports local manufacturing. 
– Businesses can make monetary contributions to BBBEE compliant businesses and SMMEs, such as
loans/donations/investments. 
– Businesses can also make non-monetary contributions to BBBEE compliant businesses and SMMEs
such as advisory services/consulting services/entrepreneurial programmes. 
– Limitation/barrier: ESD promotes preferential procurement and businesses often do not have a choice
but to transact with BBBEE approved vendors that are not necessarily there first choice. 
– Any other relevant answer related to the implication of Enterprise and supplier development (ESD) as a
BBBEE pillar on businesses.
Max (4)
b. Social responsibility
– Businesses should contribute towards social investment projects and community development. 
– Businesses should focus on critical areas of CSI such as development in the country for example,
environmental awareness/education/ housing/poverty/ unemployment etc. 
– Businesses should distribute scarce CSI resources to selected beneficiaries in the community. 
– Businesses should promote sustainable use of natural resources and support businesses that make
use of sustainable production techniques and sustainable energy utilisation practices. 
– Limitation/barrier: Businesses often are not knowledgeable or experts at societal issues and social
responsibility, and may result in wastage of financial resources if not investigated correctly. 
– Any other relevant answer related to the implication of social responsibility as a BBBEE pillar
on businesses.
Max (4)
BS Grade 12 TG.indb 35 2022/03/14 10:18:41

2.1.4 Impact of BBBEE on the business
– Businesses who are BBBEE compliant regarding the five pillars will be rated high on the BBBEE scorecard/
may get government tenders/may attract other BBBEE business partners/suppliers. 
– Encourages businesses to address the demands for redress/equity directly in the workplace. 
– Provides for enhanced human resources development through effective training and development. 
– Promotes enterprise development, by developing entrepreneurial skills of designated people to establish
their own businesses. 
– Businesses that focus on BBBEE shows commitment towards the social/education/economic
developments in the community/country. 
– Improves the image of the business because a good BBBEE rating, attracts more investors to
the business. 
– Any other relevant answer related to the positives/advantages of BBBEE on businesses.
AND/OR
– The implementation of BBBEE is time-consuming, expensive, prescriptive and administratively
burdensome, especially attaining BBBEE Scorecard ratings and training of employees. 
– Businesses have to endure rigid processes of having their BBBEE compliance measured/verified by an
independent BBBEE verification agency. 
– Some processes associated with BBBEE, if not monitored properly, may lead to corruption/
nepotism/cronyism. 
– BBBEE advocates Enterprise and Supplier Development (ESD)  which means certain businesses that are
not approved BBBEE vendors may be excluded from supplying goods and services. 
– Businesses that wish to acquire government tenders and conduct business with state, must have their
BBBEE status assessed annually, which increases the administrative burden of businesses. 
– Costs increases as businesses have to spend money on the correct compliance with the five BBBEE pillars
in order to obtain a good BBBEE rating. 
– Any other relevant answer related to the negatives/disadvantages of BBBEE on businesses.
Max (6)
Breakdown of marks
Question 2 Marks
2.1.1 2
2.1.2 4
2.1.3 a 4
2.1.3 b 4
2.1.4 6
TOTAL 20
QUESTION 1
1.1 Choose the correct description
1.1.1 E 
1.1.2 F 
1.1.3 A 
(3 × 2) (6)
Breakdown of marks
Question 1 Marks
1.1 6
TOTAL 6
BS Grade 12 TG.indb 36 2022/03/14 10:18:41

QUESTION 2: BUSINESS ENVIRONMENTS (NATIONAL CREDIT ACT)
2.1 Introduction
– The NCA is concerned with consumer credit and the credit industry. 
– The NCA was promulgated/established to curb high levels of consumer debt and promotes responsibility in making
informed decisions before buying on credit. 
– The NCA has resulted in the establishment of the National Credit Regulator (NCR). 
– The NCR is the regulatory body that applies the NCA, educates consumers about their rights, and monitors,
administers and ensures adherence of the NCA and the credit industry. 
– Businesses must be aware of consumer rights as stipulated in the NCA and guard against the violation of
these rights. 
– Businesses must be knowledgeable about the impact of the NCA on their operations/of how the NCA will negatively
or positively impact on the business. 
– Businesses should make an effort to comply with the NCA to avoid unnecessary penalties. 
– Any other relevant introduction related to the purpose of the NCA/rights of consumers as stipulated in the
NCA/impact of the NCA on businesses/ways in which businesses can comply with the NCA.
Any (2 × 1) (2)
2.2 Purpose of the NCA
– Promotes the social and financial interests of South African consumers, and by extension the South African economy.

– Ensures that consumers of credit are well informed about the details included in their credit contracts. 
– Promotes the responsible granting of credit by credit providers. 
– Ensures that credit is equally available to all qualifying consumers. 
– Protects both lenders and borrowers from negligent lending practices that may result in over-indebtedness for
consumers. 
– Ensures that the credit bureau/credit providers/debt counsellors are registered to avoid consumer exploitation. 
– Any other relevant answer related to the purpose of the NCA.
Max (8)
2.3 Rights of consumers as stipulated in the NCA
Consumers of credit have the right to:
– Apply for credit and to be free  from discrimination of any form. 
– Obtain reasons for credit being refused  by credit providers. 
– Receive protection  of their personal information. 
– Receive pre-agreement documentation  before concluding any credit transaction. 
– Fair and responsible  credit marketing. 
– Receive information  in plain and understandable language. 
– Receive documentation as required by the NCA. 
– Access and challenge credit records  and information held by the Credit Bureau. 
– Surrender/Return goods to the credit provider  in order to settle the outstanding amount/debt. 
– Apply for debt review/counselling  if the consumers cannot afford to repay their debts. 
– Receive protection from being held accountable for the use of their credit facility  after they reported the loss/theft. 
– Refuse a credit limit increase. 
– Any other relevant answer related to the rights of consumers as stipulated in the NCA.
Max (14)
2.4 Impact of the NCA on businesses
– The NCA protects businesses against non-paying customers. 
– Businesses complete thorough credit checks and receive up-to-date documentation from the consumer as proof
that they can afford the repayments/credit. 
– The information held by the credit bureau is made available to businesses so that they verify the credit worthiness
of consumers before granting credit. 
– Businesses that are authorised credit providers, may attract more consumers. 
– The correct implementation of the NCA, leads to more customers through credit sales as they are now protected
from abuse and exploitation. 
BS Grade 12 TG.indb 37 2022/03/14 10:18:41

– The whole credit process is transparent, for example, both credit providers/creditors and consumers/debtors know
their responsibilities in terms of the NCA. 
– Any other relevant answer related to the positives/advantages of the NCA on businesses.
AND/OR
– The implementation of the NCA is time-consuming, expensive, prescriptive and administratively burdensome,
especially complex and expensive debt collection procedures. 
– Failing to comply with the NCA may result in legal action faced by the business. 
– Ensure that all attempts have been exhausted to recover debt, before blacklisting the consumer. 
– Businesses/credit providers cannot collect debt from consumers who are under debt review. 
– Businesses that grant credit recklessly cannot recover the debt. 
– Profit of businesses may decline, because they can no longer depend on customers who had easy access to credit. 
– Any other relevant answer related to the negatives/disadvantages of the NCA on businesses.
Max (16)
2.5 Compliance with the NCA
– Conduct credit checks with a registered credit bureau and could also consult the National Credit Register. 
– Register the business with the National Credit Regulator (NCR). 
– Submit annual compliance reports to the NCR. 
– Conduct affordability assessments to ensure that consumers have the ability to meet their obligations. 
– Comply with the necessary procedures regarding the provisions of the Financial Intelligence Centre Act (FICA). 
– Verify the identity of clients and report suspicious transactions/train staff on their obligations in terms of FICA. 
– Any other relevant answer related to ways in which businesses can comply with the NCA.
Max (8)
2.6 Conclusion
– The NCA promotes/allows responsible lending by businesses and eliminates reckless borrowing by consumers.
– Businesses should promote awareness/compliance of the consumer rights as stipulated in the NCA. 
– Understanding the impact of the NCA on the operations of businesses is critical in whether businesses will succeed. 
– Businesses should make all attempts to comply with the NCA as businesses may face penalties/consequences for
non-compliance such as a compliance order/large fines/business licence being revoked. 
– Any other relevant conclusion related to the purpose of the NCA/rights of consumers as stipulated in the NCA/
impact of the NCA on businesses/ways in which businesses can comply with the NCA.
Any (1 × 2) (2)
[40]
2.1 Introduction 2
2.2 Purpose of the NCA 8
2.3 Rights of consumers as stipulated in the NCA 14 Max
2.4 Impact of the NCA on businesses 16 32
2.5 Compliance with the NCA 8
2.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 38 2022/03/14 10:18:41

QUESTION 1
1.1 CPA rights from given statements
1.1.1 Right to fair and honest dealings 
1.1.2 Right to choose 
1.1.3 Right to information about products and agreements/Right to disclosure and information 
1.1.4 Right to accountability from suppliers 
1.1.5 Right to equality in the consumer market place 
(5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 2
2.1 CPA
2.1.1 Purpose of the CPA from the scenario
– Promotes responsible consumer behaviour amongst consumers. 
– Establishes national standards to protect consumers regardless of economic status. 
Any (2 × 1) (2)
2.1.2 Actions regarded as non-compliance according to the CPA
– Treating customers unfairly based on the grounds of any form of discrimination such as race, gender, age,
religion, language, culture, disability, sexual orientation etc. 
– Charging different and unfair prices to consumers for the same goods and services. 
– Denying/refusing customers proper information about the goods and services. 
– Varying/differentiating the quality of goods when selling in different areas, known as place
discrimination. 
– Prioritising the needs of any consumer group over another when marketing/selling goods and services. 
– Falsifying information about the product such as country of origin, types of ingredients and expiry
dates etc. 
– Any other relevant answer related to actions regarded as non-compliance according to the CPA.
Max (4)
2.1.3 Negative impact of the CPA on the business
– The implementation of the CPA is time-consuming, expensive, prescriptive and administratively
burdensome, especially the implementation processes and procedures required by the CPA. 
– Consumers can take advantage of a business and return goods when it is not necessary to do so. 
– Businesses may lose their competitive advantage as confidential and classified information may become
available to competitors. 
– Training costs of the business increases as staff need to be trained on the CPA and the business often has
to employ legal specialists that are knowledgeable of the CPA. 
– Documentation, such as sales contracts, must be edited, upgraded and simplified which places
additional financial strain on the business, because consumers have the right to receive contracts in an
understandable language. 
– Businesses experience significant increases in administration costs, as legal contracts need to be
reworded so that it is in a language that is easily understandable to consumers. 
– Any other relevant answer related to the negative impact of the CPA on businesses.
Max (6)
BS Grade 12 TG.indb 39 2022/03/14 10:18:41

2.1.4 Consumer rights in terms of the CPA
Right to choose 
– Choose suppliers and goods and services. 
– Shop around for the best prices and then make informed choices. 
– Return goods that are unsafe/defective for a full refund. 
– Request written quotations and cost estimates. 
– Any other relevant answer related to the right to choose as a consumer right in terms of the CPA.
Right 2
Explanation 1
Submax 3
Right to fair and honest dealings 
– Suppliers may not give misleading/false information to consumers. 
– Suppliers may not use physical force/harass consumers to buy products. 
– Businesses may not overbook/oversell goods/services and then dishonour the agreement. 
– Businesses may not promote pyramid schemes and chain-letter schemes. 
– Any other relevant answer related to the right to fair and honest dealings as a consumer right in terms of
the CPA.
Right 2
Explanation 1
Submax 3
Right to information about products and agreements/Right to disclosure and information 

– Businesses must ensure that contracts/agreements should be in a plain language, that is simple and
easy to understand. 
– Businesses should label product and trade descriptions accurately. 
– Businesses should display prices which are fully inclusive/disclosing of all costs. 
– Businesses should charge consumers the lower price if two different prices for the same product
are displayed. 
– Any other relevant answer related to the right to information about products and agreements/right to
disclosure and information as a consumer right in terms of the CPA.
Right 2
Explanation 1
Submax 3
Right to fair/responsible marketing/promotion 
– Businesses should disclose all information related to the country of origin, expiry dates/ingredients of
the products. 
– Consumers may cancel purchases made through direct marketing within five working days/cooling
off-period. 
– Businesses should not deliberately mislead consumers on pricing, benefits/uses of goods. 
– Businesses should conduct marketing of business activities in a responsible manner that complies with
guidelines as outlined in the CPA. 
– Any other relevant answer related to the right to fair/responsible marketing/promotion as a consumer right
in terms of the CPA.
Right 2
Explanation 1
Submax 3
Right to accountability from suppliers 
– Businesses should honour credit vouchers and prepaid services. 
– Suppliers in possession of any prepaid certificates/credit vouchers must not treat such property as theirs
and must exercise care/diligence and skill/and assume liability for any losses suffered by consumers in
this regard. 
– Consumers have the right to be protected in lay-bye agreements. 
BS Grade 12 TG.indb 40 2022/03/14 10:18:41

– Suppliers must supply equivalent or superior products or offer a full refund with interest if goods in the
lay-bye are not provided by businesses. 
– Any other relevant answer related to the right to accountability from suppliers as a consumer right in terms
of the CPA.
Right 2
Explanation 1
Submax 3
Right to fair/just/reasonable terms and conditions 
– Consumers have the right to protection against unfair, unreasonable or unjust contract terms. 
– Consumers have the right to approach the Court to ensure fair and just conduct, terms and conditions. 
– Businesses should provide consumers with written notices of clauses that may limit consumer rights. 
– Businesses may not market/sell goods at unfair prices to consumers. 
– Any other relevant answer related to the right to fair/just/reasonable terms and conditions as a consumer
right in terms of the CPA.
Right 2
Explanation 1
Submax 3
Right to equality in the consumer market place 
– Businesses may not charge different prices for the same goods/services. 
– Businesses should not discriminate against any group of consumers when marketing their products and
services in different areas/places. 
– Businesses should not limit access to goods and services in the consumer market. 
– Businesses may not under any circumstance, vary the quality of their goods to different consumers as
this is discriminatory. 
– Any other relevant answer related to the right to equality in the consumer market place as a consumer right
Right 2
Explanation 1
Submax 3
Max (12)
2.1.5 Penalties for non-compliance with regards to the CPA
– Businesses that do not comply may receive a compliance order that forces the business to comply with
the CPA. 
– Businesses who neglect to comply with the CPA may receive large fines and may be even provided with
a jail sentence, that is dependent on the severity of the non-compliance. 
– Licences of businesses may be revoked for unfair consumer practices. 
– Business may be requested by the National Consumer Commission (NCC) to suspend activities
indefinitely. 
– Businesses may be compelled to pay interest or damages that is due to the consumer. 
– Any other relevant answer related to the consequences for non-compliance with regards to the CPA.
Max (6)
Breakdown of marks
Question 2 Marks
2.1.1 2
2.1.2 4
2.1.3 6
2.1.4 12
2.1.5 6
TOTAL 30
BS Grade 12 TG.indb 41 2022/03/14 10:18:41

Consolidation Learner’s Book page 36 – 40
QUESTION 1
DOWN ACROSS
1 Compensation board  2 National Credit Act 
3 Bargaining councils  4 Lockout 
5 Employment Equity Plan  6 Labour Relations Act 
7 Employment Equity Act  8 Labour Court 
9 National Credit Regulator  10 Compliance order 
11 Affirmative action  12 Right to choose 
13 Learnerships  14 Skills Development Act 
15 Family responsibility leave  16 Ownership 
17 National Consumer Commission  18 Fronting 
Breakdown of marks
Question 1 Marks
36
TOTAL 36
QUESTION 2
2.1 Multiple choice
2.1.1 A 
2.1.2 D 
2.1.3 A 
2.1.4 C 
2.1.5 D 
(5 × 2) (10)
2.2 Choose the correct answer
2.1.1 F 
2.1.2 A 
2.1.3 B 
2.1.4 G 
2.1.5 I 
(5 × 2) (10)
Breakdown of marks
Question 2 Marks
2.1 10
2.2 10
TOTAL 20
BS Grade 12 TG.indb 42 2022/03/14 10:18:41

QUESTION 3
3.1 Legislation
3.1.1 Acts violated by DHM
Acts Motivations
1. Skills Development Act/SDA  The business does not pay the 1% skills
development levy irrespective that the annual
payroll is R6 500 000.
2. Basic Conditions of Employment Act/BCEA When workers work on Sundays, they are paid
 their normal rate.
3. Broad-Based Black Economic Empowerment Due to fronting, this misrepresentation has
Act/BBBEE  resulted in greater access to government
tenders.
4. Consumer Protection Act/CPA  In addition, the country of origin for the materials
used are not indicated in the labels of the
garments.
5. Employment Equity Act/EEA  Furthermore, affirmative action requirements are
often not met.

2 Award marks for the correct identification of the Act/legislation even if the
quote is incomplete/incorrect.
3 Do not award marks for the motivation, if the Acts/legislations were
incorrectly identified.
4 Mark the first FOUR (4) Acts with the corresponding motivation only.
Max (12)
3.2 Consumer rights as stipulated in the NCA
– Right to choose 
– Right to fair and honest dealings 
– Right to information about products and agreements/Right to disclosure and information 
– Right to fair/responsible marketing/promotion 
– Right to accountability from suppliers 
– Right to fair/just/reasonable terms and conditions 
– Right to equality in the consumer market place 
– Any other relevant answer related to consumer rights according to the NCA.
NOTE: Mark the first TWO (2) answers only.
Max (4)
3.3 Role of SETAs in supporting the implementation of the SDA
– Registers various learnerships and learning programmes. 
– Promotes and establishes various learnerships. 
– Approves the workplace skills plans and annual training reports submitted by businesses. 
– Develops skills plans that are in line with the aims of the National Skills Development Strategy (NSDS). 
– Develops/builds skills development plans for the various economic sectors. 
– Promotes learnerships and learning programmes by correctly identifying the best workplaces for practical
work experience. 
– Any other relevant answer related to the role of SETAs in supporting the implementation of the SDA.
Max (6)
BS Grade 12 TG.indb 43 2022/03/14 10:18:41

3.4 Parental leave as a provision of the BCEA
– An employee who is a parent is entitled to 10 consecutive day’s parental leave after the birth of his/her child
irrespective of gender. 
– Parental leave is unpaid but the employee/parent may claim from the Unemployment Insurance Fund/UIF. 
– The employer must be informed/notified at least one month before the excepted due date of birth. 
– Adoption leave is applicable to the adoption of a child below the age of 2 years. 
– One parent of the adopted child is entitled to 10 weeks adoption leave to take of the child, while the other parent
is entitled to 10 consecutive day’s normal parental leave. 
– Commissioning parental leave is only applicable to surrogate motherhood where one parent is entitled to 10 weeks
commissioning parental leave to take of the child, while the other parent is entitled to 10 consecutive day’s
normal parental leave. 
– Any other relevant answer related to parental leave as a provision of the BCEA.
Max (6)
3.5 Negative impact of the EEA on businesses
– The implementation of the EEA is time-consuming, expensive, prescriptive and administratively burdensome
because employment equity reports must be submitted to the Department of Labour every two years. 
– The training costs of the business increases, as employees need to be correctly trained regarding the EEA. 
– Employment Equity appointments may cause conflict in the workplace as some employees may not respect the
knowledge, skills, qualifications and experiences of the EE appointment. 
– Businesses sometimes appoint unsuitable and unqualified candidates into an EE position in order to meet the
requirements of the employment equity plan. 
– Businesses find it difficult to make appointments because of the unsuitability of the candidate, which results in the
position not being filled. 
– Businesses must submit employment equity plans and compliance certificates before business can be conducted
with the state. 
– Any other relevant answer related to the negative impact of the EEA on businesses.
Max (6)
3.6 Compliance with BBBEE
– Businesses need to find all means to achieve the requirements of the five BBBEE pillars, such as promoting
affirmative action when making appointments. 
– Conduct business activities with BBBEE compliant vendors/suppliers/participate in preferential procurement.
– Conduct regular skills development training with black employees. 
– Sell shares to more black individuals (within and outside) the organisation. 
– Appoint and promote more black employees into managerial positions. 
– Implement sound Corporate Social Investment (CSI) policies to improve and develop society at large. 
– Any other relevant answer related to ways in which businesses can comply with BBBEE.
Max (6)
Breakdown of marks
Question 3 Marks
3.1.1 12
3.2 4
3.3 6
3.4 6
3.5 6
3.6 6
TOTAL 40
BS Grade 12 TG.indb 44 2022/03/14 10:18:41

QUESTION 4
4.1 Legislation from given statements
4.1.1 Broad-Based Black Economic Empowerment Act/BBBEE 
4.1.2 National Credit Act/NCA 
4.1.3 Skills Development Act/SDA 
4.1.4 Basic Conditions of Employment Act/BCEA 
4.1.5 Compensation for Occupational Injuries and Diseases Act/COIDA 
(5 × 2) (10)
4.2 Purpose of the SDA
– Develops the skills of the South African people, with the purpose of improving productivity. 
– Encourages businesses to improve the skills of new and existing workers. 
– Invests in the education and training of the South African workforce. 
– Purposefully redresses imbalances of the past through education and training. 
– Improves the job prospects of previously disadvantaged people. 
– Provides the systematic implementation of strategies on a national, sector and workplace basis. 
– Any other relevant answer related to the purpose of the SDA.
Max (6)
4.3 Consumer rights from the scenario
4.3.1 Consumer rights violated by the business from the scenario
CONSUMER RIGHTS MOTIVATIONS
1. Right to fair/responsible marketing/promotion A hairstylist at Nkwenkwana Professional
 Hairstylists did not declare all the ingredients
of one of the hair products to a customer, and
because of this, the customer who was allergic to
one of the ingredients, was hospitalised. 
2. Right to fair and honest dealings  Sales staff also harassed customers to make
purchases. 

2 Award marks for the correct consumer right even if the quote is incomplete.
3 Do not award marks for the motivation if the consumer rights were
Max (6)
4.3.2 Other consumer rights as outlined in the CPA
Right to choose 
– Choose suppliers and goods and services. 
– Shop around for the best prices and then make informed choices. 
– Return goods that are unsafe/defective for a full refund. 
– Request written quotations and cost estimates. 
– Any other relevant answer related to the right to choose as a consumer right in terms of the CPA.
Right 2
Explanation 1
Submax 3
Right to information about products and agreements/Right to disclosure and information 
– Businesses must ensure that contracts/agreements should be in a plain language, that is simple and
easy to understand. 
– Businesses should label product and trade descriptions accurately. 
– Businesses should display prices which are fully inclusive/disclosing of all costs. 
– Businesses should charge consumers the lower price if two different prices for the same product
are displayed. 
– Any other relevant answer related to the right to information about products and agreements/right to
disclosure and information as a consumer right in terms of the CPA.
Right 2
Explanation 1
Submax 3
BS Grade 12 TG.indb 45 2022/03/14 10:18:41

Right to accountability from suppliers 
– Businesses should honour credit vouchers and prepaid services. 
– Suppliers in possession of any prepaid certificates/credit vouchers must not treat such property as theirs and
must exercise care/diligence and skill/and assume liability for any losses suffered by consumers in
this regard. 
– Consumers have the right to be protected in lay-bye agreements. 
– Suppliers must supply equivalent or superior products or offer a full refund with interest if goods in the lay-
bye are not provided by businesses. 
– Any other relevant answer related to the right to accountability from suppliers as a consumer right in terms
of the CPA.
Right 2
Explanation 1
Submax 3
Right to fair/just/reasonable terms and conditions 
– Consumers have the right to protection against unfair, unreasonable or unjust contract terms. 
– Consumers have the right to approach the Court to ensure fair and just conduct, terms and conditions. 
– Businesses should provide consumers with written notices of clauses that may limit consumer rights. 
– Businesses may not market/sell goods at unfair prices to consumers. 
– Any other relevant answer related to the right to fair/just/reasonable terms and conditions as a consumer
right in terms of the CPA.
Right 2
Explanation 1
Submax 3
Right to equality in the consumer market place 
– Businesses may not charge different prices for the same goods/services. 
– Businesses should not discriminate against any group of consumers when marketing their products and
services in different areas/places. 
– Businesses should not limit access to goods and services in the consumer market. 
– Businesses may not under any circumstance, vary the quality of their goods to different consumers as
this is discriminatory. 
– Any other relevant answer related to the right to equality in the consumer market place as a consumer right
Right 2
Explanation 1
Submax 3
NOTE: 1 Do not award marks for the right to fair/responsible marketing/promotion.

2 Do not award marks for the right to fair and honest dealings.
Max (6)
4.3.3 Compliance with the CPA
– Display the business’s name on all business documentation, for example, letterheads/ invoices/contracts. 
– Allow consumers a five-day cooling off period in the sales agreement. 
– Disclose the prices of all products that are on sale. 
– Ensure that the quality of the goods and services is standardised and identical for all consumers. 
– Comply with requirements regarding the display of information on labels/ packaging, for example, smoking
is hazardous for pregnant women. 
– Conduct training with all staff members and stakeholders on the CPA. 
– Any other relevant answer related to ways in which NPH can comply with the CPA.
Max (6)
BS Grade 12 TG.indb 46 2022/03/14 10:18:41

– Covers all employees in the workplace, if both parties (employers and employees) meet all the necessary safety
– Provides employees with financial (monetary) compensation for any injury/disability/illness that results from
– Any other relevant answer related to the positives/advantages of COIDA on businesses. 
AND/OR
in cash flow problems for the business. 
– Implementation processes/procedures required by the Act may be expensive and place additional financial burden
on struggling businesses. 
– Employers may be forced to pay heavy penalties if they are found guilty of negligence, or for not enforcing
safety measures. 
– South Africans who are temporarily/permanently employed in foreign countries are not covered by COIDA. 
Max (6)
Breakdown of marks
Question 4 Marks
4.1 10
4.2 6
4.3.1 6
4.3.2 6
4.3.3 6
4.4 6
TOTAL 40
QUESTION 5: B
USINESS ENVIRONMENTS (BASIC CONDITIONS OF EMPLOYMENT
ACT AND LABOUR RELATIONS ACT)
5.1 Introduction
– The BCEA sets out the minimum conditions that ensure fair labour practices and human resources practices in
the workplace. 
– The BCEA makes provision for conditions of employment which include hours of work, overtime and leave to which
employers must adhere. 
– The LRA is an enabling framework that regulates the relationship between employees and employers, and promotes
sound relations between trade unions and employer organisations. 
– Businesses should strive to derive the positive impact and reduce the negative impact of the LRA on their operations. 
– Businesses should ensure that they do not participate in actions regarded as non-compliance as they violate the LRA
and are unjust/unfair and illegal.
– Penalties/consequences for non-compliance refer to the legal charges businesses may face for not complying with
the particular Act. 
– Any other relevant introduction related to the purpose of the BCEA/Provisions of the BCEA/impact of the LRA on
businesses/actions regarded as non-compliance according to the LRA.
Any (2 × 1) (2)
BS Grade 12 TG.indb 47 2022/03/14 10:18:41

5.2 Purpose of the BCEA
– Outlines clear terms and conditions of employment for employers and employees. 
– Regulates and promotes the right to fair labour practices as outlined in the Constitution of South Africa. 
– Provides minimum requirements/standards for the creation of employment contracts. 
– Advances the economic development and social justice of employees. 
– Adheres to the rules and regulations set out by the International Labour Organisation. 
– Regulates the variations of the basic conditions of employment. 
– Any other relevant answer related to the purpose of the BCEA.
Max (8)
5.3 Provisions of the BCEA
Hours of work 
– Employees are not allowed to work for more than 45 hours per week. 
– Employees may work 9 hours a day if they work five days or less per week. 
– Employees may work 8 hours a day if they work more than five days a week. 
– Night work performed by employees after 18:00 and before 6:00 the next day should be done by mutual
agreement and employees must be compensated by allowance/reduction of work hours. 
– Any other relevant answer related to hours of work as a provision of the BCEA.
Submax (4)
Overtime 
– Employees cannot be forced to work overtime and must agree to work overtime. 
– Employees cannot work more than 3 hours overtime per day,or 10 hours per week. 
– Overtime must be compensated as follows:
– 1 ½ times/One and half times the normal rate of pay for overtime worked on week days and Saturdays. 
– 2 times/Twice/Double the normal rate of pay for overtime worked on Sundays and public holidays. 
– Any other relevant answer related to overtime as a provision of the BCEA.
Submax (4)
Leave
Annual leave 
– 21 consecutive days annual leave per year or 1 day for every 17 days worked/ 1 hour for every 17 hours worked. 
– An employer can only pay a worker in lieu/instead of granting leave if that worker leaves the job/ terminates the
employment contract. 
– Annual leave must be granted within 6 months after the leave cycle ended. 
– Any other relevant answer related to annual leave as a provision of the BCEA.
Sick leave 
– Employees are entitled to 30 days/6 weeks paid sick leave in a 3 year/36 months cycle. 
– 1 day paid sick leave for 26 days worked during the first 6 months of employment. 
– A medical certificate may be required before paying an employee who is absent for more than 2 consecutive days/
who is frequently absent. 
– Thereafter, they may take all 30 days sick leave, provided they meet the legal requirements. 
– Any other relevant answer related to sick leave as a provision of the BCEA.
Maternity leave 
– Pregnant employees are entitled to four consecutive months of maternity leave. 
– Pregnant employees are prevented from performing work that may be hazardous to themselves and the
unborn child. 
– Maternity leave usually commences from any time from four weeks before the expected date of birth of the
unborn child under the advice of a doctor/midwife. 
– Any other relevant answer related to maternity leave as a provision of the BCEA.
Family responsibility leave 
– An employee may receive 3 to 5 days paid leave per year on request in the event of the death of the employee’s
spouse/life partner/parent/ adoptive parent/ grandparent/child/adoptive child/grandchild/sibling. 
– An employer may require reasonable proof, before approving this type of leave, such as a death certificate of the
family member whose funeral will be attended. 
– Any other relevant answer related to family responsibility leave as a provision of the BCEA.
BS Grade 12 TG.indb 48 2022/03/14 10:18:41

Parental leave 
– An employee who is a parent is entitled to 10 consecutive day’s parental leave after the birth of his/her child
irrespective of gender. 
– Parental leave is unpaid but the employee/parent may claim from the Unemployment Insurance Fund/UIF. 
– The employer must be informed/notified at least one month before the excepted due date of birth. 
– Adoption leave is applicable to the adoption of a child below the age of 2 years. 
– One parent of the adopted child is entitled to 10 weeks adoption leave to take of the child, while the other parent
is entitled to 10 consecutive day’s normal parental leave. 
– Commissioning parental leave is only applicable to surrogate motherhood where one parent is entitled to 10 weeks
commissioning parental leave to take of the child, while the other parent is entitled to 10 consecutive day’s
normal parental leave. 
– Any other relevant answer related to parental leave as a provision of the BCEA.
Submax (4)
Meal breaks and rest periods 
– Employees must have a meal break of 60 minutes after 5 continuous hours of work. 
– The meal break can be reduced to 30 minutes/half an hour  by mutual written agreement, when working less than
6 hours per day. 
– Employees must have a daily rest period of 12 continuous hours/a weekly rest period of 36 continuous hours
which must include Sundays. 
– Any other relevant answer related to meal breaks and rest periods as a provision of the BCEA.
Submax (4)
Public holidays 
– Employees must be paid for any public holiday that falls on a working day.
– Employees work on public holidays by mutual agreement and are paid double/2 times/twice their normal rate.
– Any other relevant answer related to public holidays as a provision of the BCEA.
Submax (4)
Termination of employment 
– An employment contract may only be terminated following 1 week’s notice, if the employee has been employed
for 6 months or less. 
– A minimum of 4 weeks’ notice must be given to the business, if the employee has been employed for a year
or longer. 
– The employee must be given formal notice in writing if the employer has terminated the contract, similarly, the
employee must give the employer formal notice in writing for terminating the contract. 
– Any other relevant answer related to termination of employment as a provision of the BCEA.
Submax (4)
Child and forced labour 
– It is illegal to employ a child younger than 15 years of age in South Africa. 
– It is also illegal to force an employee to work. 
– Businesses may employ children over the age of 15 years, if employment is not harmful to their welling-being/
health/ /education/moral and social development/ minors under the age of 18 may not do dangerous work/work
meant for an adult. 
– Any other relevant answer related to child and forced labour.
Max (16)
5.4 Impact of the LRA on businesses
– Ensures the participation of all parties in the collective bargaining process, which reduces conflict in
the workplace. 
– Protects the rights of businesses and employer organisations  in labour related issues. 
– Promotes quick and less expensive labour dispute resolutions. 
– Protects employers who recourse lawful lockouts when negotiations between parties fail and when employees
participate in strike action. 
– Prevents unfair discrimination in the workplace, because equal opportunities are promoted for all employees. 
– Provides sound dispute resolution through consensus between organised labour, businesses and the state. 
– Any other relevant answer related to the positives/advantages of the LRA for businesses.
BS Grade 12 TG.indb 49 2022/03/14 10:18:41

AND/OR
– The LRA may reduce global competitiveness of businesses due to lower workplace productivity. 
– Businesses may lose their competitive advantage because important information is often disclosed to trade
unions during collective bargaining which may be leaked to competitors. 
– The LRA results in decreased profitability of businesses because of a decline in productivity and sales. 
– Productivity may decrease significantly if employees engage in trade union related activities during work hours. 
– The implementation of the LRA may be very costly and time-consuming, especially the dispute resolution process. 
– The employment of legal specialists and labour consultants increases the costs of the business. 
– Any other relevant answer related to the negatives/disadvantages of the LRA for businesses.
Max (12)
5.5 Actions regarded as non-compliance according to the LRA
– Dismissing employees unfairly or illegally. 
– Preventing employees from forming and joining trade unions. 
– Refusing to provide trade union representatives leave to attend to trade union matters. 
– Preventing employees from participating in legal strikes. 
– Dismissing employees who participate in legal strikes. 
– Forcing employees to give up their trade union membership and representation. 
– Any other relevant answer related to actions that are regarded as non-compliance by the LRA.
Max (10)
5.6 Conclusion
– Businesses must keep abreast of amendments made regarding the variations on the BCEA provisions by the Minister
of Labour. 
– Through effective implementation of the LRA, fair labour practices in the workplace contribute to improved
efficiency in business operations with minimal disruptions. 
– Sound adherence/implementation of the LRA ensures that businesses derive the positive impact and reduce the
negative impact of the Act on the their operations. 
– Businesses need to implement effective ways of improving compliance with the BCEA and LRA in order to avoid
heavy penalties. 
– Any other relevant conclusion related to the purpose of the BCEA/provisions of the BCEA/impact of the LRA on
businesses/actions regarded as non-compliance according to the LRA.
Any (1 × 2) (2)
[40]
5.1 Introduction 2
5.2 Purpose of the BCEA 8
5.3 Provisions of the BCEA 16 Max
5.4 Impact of the LRA on businesses 12 32
5.5 Actions regarded as non-compliance according to the LRA 10
5.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 50 2022/03/14 10:18:42

TOPIC 2 The human resources
function
Teaching tips:
• Refer learners to the content covered in Grade 11. • Scenarios, statements and employment
• Emphasise that this topic in Grade 12 builds on advertisements are useful tools that should be used
the foundational knowledge of the content covered to explain the differences between ‘job description’
in 11. and ‘job specification’.
• Compile a baseline assessment to determine • Provide a detailed description of these concepts.
content gaps. • Use columns and tabulations when teaching sources
• Revise & consolidate content identified in the and methods of recruitment.
analysis of the baseline assessment. • Provide opportunities for learners to conduct
• Unpack the glossary of concepts with learners. research on the impact of internal and external
• The human resources function in a business focuses recruitment methods.
on recruitment, management and providing • This will enable learners to gain insight in this topic
direction for the employees. and be able to respond appropriately, to direct and
• Emphasise the human resources activities that will be indirect questions
focused on in this topic. • Practical demonstrations and role-playing activities
• Revise the different ways in which businesses should can be used to enhance understanding of the
comply with the SDA, LRA, BCEA and EEA before concepts: interviewer and interviewee. The use of a
teaching the implications of these Acts on the two-column table listing the differences between the
human resources function. Then emphasise, that roles of the interviewer and interviewee will assist
learners should not confuse the evaluation of the learners to apply this knowledge to specific scenarios
Acts done in topic 1 with the implications of the and extracts used in formal assessment tasks.
above mentioned Acts on the HR function, as it is • As a practical application exercise, learners must be
not the same thing. requested to Google or research different examples
of benefits offered by businesses and report on their
impact.
• A clear distinction must be made between the
purpose, aspects and benefits of induction. It is
important to understand the purpose of induction
before unpacking the aspects that must be included
in an induction programme, as some vital aspects
for inclusion may be embedded in the purpose.
Here again, learners must be reminded to provide
complete sentences when responding to questions
on the purpose of induction to avoid losing marks
unnecessarily.
• Encourage learners to write full sentences on
reasons for the termination of an employment
contract.
• Use practical examples of the differences between
piecemeal and time-related salary determination
methods.
• Lower- and middle-order questioning can be
effectively used in these topics, as a means to
illustrate the difference.
Topic 2 The human resources function 51
BS Grade 12 TG.indb 51 2022/03/14 10:18:42

• Learners must be made aware that certain examples – Consult the following past NSC Question
of external recruitment fall under the same category Papers for Section B and C type questions type
and marks will be lost if these are repeated. questions
• A clear distinction must be made between the – May/June 2021 P1 Question 3.3 – scenario on
sources of internal and external recruitment, as well job analysis
as between the sources and methods of recruitment. – May/June 2021 P1 Question 4.5 – scenario on
• Learners must recognise the difference between the interviews
words ‘interviewer’ and ‘interviewee’ in relation to – Nov 2020 P1 Question 3.4 – scenario on
the roles of each party during an interview. recruitment
• It should be emphasised that the HR function – Nov 2020 P1 Question 6 – essay on the human
does not train employees, but assists managers in resources function
identifying employee training and development – Nov 2019 Question 5.2 – scenario on job
needs. The word ‘implications’ refer to compliance, description and job specification
as the focus is on how the human resources function – Nov 2019 Question 6.10 – scenario on
should comply with SDA, LRA, BCEA and EEA termination of an employment contract
• Learners must be alerted to the fact that businesses – June 2019 Question 5.3 – scenario on
would offer lucrative fringe benefits to attract and recruitment
retain skilled and competent employees. – June 2019 Question 10 – essay on human
resources
– Nov 2018 Question 5.3 – scenario on the role of
the interviewer and candidate
– May/June 2018 Question 5.4 – scenario on salary
determination methods
– May/June 2018 Question 10 – essay on human
resources
– Feb/March 2018 Question 5.4 – scenario on
salary determination methods
employment contract
key terms of the previous day’s content – in that
way teachers expose learners to continuous
consolidation.
QUESTION 1
1.1 Introduction
– Recruitment aims to attract/source the best possible applicants that possess the required skills/knowledge/
qualifications/competencies/experience to fill vacancies/available posts. ü
– A job analysis is a tool used by the human resources function to obtain and analyse information about the business’s
workforce so that they can place the right person in the right job. ü
– The human resources department must make use of reliable recruitment procedures/processes/systems to achieve
specific human resources goals. ü
– Any other relevant introduction related to the meaning of recruitment/job analysis/recruitment procedure/impact of
external recruitment.
Any (2 × 1) (2)
BS Grade 12 TG.indb 52 2022/03/14 10:18:42

1.2 Meaning of recruitment
– Recruitment is the process used by a business to identifyü certain vacancies in the business and attract suitable
candidates for them. ü
– Recruitment aims to find candidates who have the necessaryü skills/knowledge/qualifications/competencies/
experience to fill the vacancy. ü
– Businesses may choose to use an internal or external method of recruitmentü depending on the nature/
requirements of the vacancy. ü
– It is an on-going processü as employees leave their jobs for other jobs/achieve promotions/retire/as new
technological skills are required. ü
– It begins with the process of actively seeking out/finding candidates for certain vacanciesü from inception to the
successful integration of the candidate/recruit into the business. ü
– Any other relevant answer related to the meaning of recruitment.
Max (10)
1.3 Distinction between the components of job analysis
JOB DESCRIPTION üü JOB SPECIFICATION üü
Describes duties/responsibilities/ofü a specific job.ü Describes the minimum acceptableü personal
qualities/skills/ qualifications needed for the job. ü
Written description of the jobü and its requirements. / Written description of specific qualifications/skills/
Summary of the nature/type of job. ü experienceü needed for the job. ü
Describes key performance areas tasks for a specific Describes key requirements for the person who will
jobü for example, job title/duties/working conditions/ fill the positionü, for example, formal qualifications
locations of the place of work/relationship of the job /willingness to travel/work unusual hours, etc. ü
with other jobs in the business, etc. ü
Any other relevant answer related to job description. Any other relevant answer related to the job
specification.
Component 2 Component 2
Explanation 4 Explanation 4
Submax 6 Submax 6

2 The difference does not have to link but they must be clear.
3 Award a maximum of SIX (6) marks if the difference is not clear/mark either job description or
job specification only.
Max (12)
1.4 Recruitment procedure
– The human resources manager (HRM) should evaluate the job/prepare a job analysisü, that includes the job
specification/job description/in order to identify recruitment needs. ü
– The HRM should indicate the job specification/key performance areasü to attract suitable candidates. ü
– Choose the method of recruitmentü, for example, internal/external recruitment, to reach/target the suitable
applicants/ candidates. ü
– If the external recruitment is chosenü, the relevant recruitment sources should be selected, for example, recruitment
agencies/tertiary institutions/ newspapers/electronic media, etc. ü
– Vacancies can be internally advertisedü via internal email/word of mouth/posters/office notice boards etc. ü
– External recruitment should be consideredü if internal recruitment was unsuccessful. ü
– The advertisement should be prepared with the relevant informationü, for example, the name of the company,
contact details, contact person, etc. ü
– Place the advertisement in the selected mediaü that will ensure that the best candidates apply. ü
– Any other relevant answer related to the recruitment procedure.
Max (12)
BS Grade 12 TG.indb 53 2022/03/14 10:18:42

1.5 Impact of external recruitment
– New candidates bring newü talents/ideas/experiences/skills/knowledge into the business. ü
– It may help the business to meetü affirmative action/EEA and BBBEE targets. ü
– There is a larger pool of candidatesü from which to choose. ü
– There is a better chance of getting suitable candidates with the required skills/qualifications/competencies/
experience ü who do not need much training/development which reduces costs. ü
– Minimises unhappiness/conflict amongst current/existing employeesü who may have applied for the post. ü
– Overall efficiency/productivity may occurü if the new worker actively adds value to the business. ü
– Any other relevant answer related to the positives/advantages of external recruitment on businesses.
AND/OR
Negative/disadvantages
– External sources can be expensiveü, for example, recruitment agencies’ fees/advertisements in newspapers/
magazines. ü
– The selection process may result inü an ineffective/incompetent candidate being chosen. ü
– Information on CVs/refereesü may not be reliable/may be falsified. ü
– Recruitment process takes longer/is more time consuming and expensiveü as background checks must be
conducted.
– New candidates generally take longer to adjustü to a new work environment. ü
– In-service training may be needed which decreases productivityü during the time of training/increases costs of the
business. ü
– Many unsuitable applicationsü may slow down the selection process. ü
– Any other relevant answer related to the negatives/disadvantages of external recruitment on businesses.
Max (12)
1.6 Conclusion
– Employees are the most valuable asset of the business, and therefore the success of the business is strongly
influenced by sound recruitment processes applied by the human resources function. üü
– Businesses would use external recruitment after internal recruitment methods were deemed unsuccessful. üü
– Businesses would choose to use external recruitment depending on the nature of the job according to the
job analysis. üü
– Any other relevant conclusion related to the meaning of recruitment/job analysis/recruitment procedure/impact of
external recruitment.
Any (1 × 2) (2)
[40]
1.1 Introduction 2
1.2 Meaning of recruitment 10
1.3 Distinction between the components of job analysis 12 Max
1.4 Recruitment procedure 12 32
1.5 Impact of external recruitment 12
1.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 54 2022/03/14 10:18:42

QUESTION 1
1.1
Interviews and selection procedure
1.1.1 Roles of an interviewee during the interview from the scenario
– Tamia listened carefully to questions before responding during the interview. ü
– Tamia also demonstrated confidence during the interview.ü
NOTE: 1 Do not award marks for quotes that are incomplete.
2 Mark the first TWO (2) answers only.
(2 × 1) (2)
1.1.2 Other roles of an interviewee during the interview
– Greet the interviewer by name with a solid handshake and a friendly smile. üü
– Make eye contact and have good posture/body language. üü
– Be inquisitive and show interest in the business. üü
– Ask clarity seeking questions. üü
– Show respect and treat the interview with its due importance. üü
– Be honest about mistakes and explain how you dealt with it. üü
– Know your strengths and weaknesses and be prepared to discuss it. üü
– Thank the interviewer for the opportunity given to be part of the interviews. üü
– Any other relevant answer related to the roles of an interviewee during the interview.
NOTE: 1 Mark the first THREE (3) answers only.
2 Do not allocate marks for answers quoted in QUESTION 1.1.1.
Max (6)
1.1.3 Purpose of an interview
– Creates an opportunity where informationü about the business and applicant can be exchanged. ü
– Obtains information about the strengths and weaknessesü of each candidate. ü
– Determines a candidate’s suitabilityü for the job/Determines whether the candidate would add value
to the business. ü
– Helps the employer in choosing/making an informed decisionü about the most suitable candidate for
the job. ü
– Matches information provided by the applicantü to the job requirements. ü
– Evaluates the skills/personal characteristics/qualitiesü of the applicant. ü
– Verifies to a certain degree, the accuracyü regarding information presented on the CV. ü
– Any other relevant answer related to the purpose of an interview.
Max (6)
1.1.4 Selection procedure
Option 1
– Determine fair assessment criteriaü on which selection will be based. ü
– Use the assessment criteria to assess all CVs/application forms received during recruitment/Conduct
preliminary screeningü, which is sorting the applications received according to the criteria for the job. ü
– Check that applicants are not submitting false documentsü such as forged certificates/degrees/
achievements. ü
– Make a preliminary list of all applicantsü who qualify for the post. ü
– Screen and check referencesü, for example, check applicants’ criminal records/credit history/social
media. etc. ü
– Conduct preliminary interviewsü to identify suitable applicants. ü
– Inform all applicantsü about the outcome of the application. ü
– Compile a shortlistü of approximately five people. ü
– Invite the shortlisted applicants/candidatesü for an interview. ü
– Shortlisted candidates may be subjectedü to various types of selection tests, for example, skills test. ü
– Once candidates have been selectedü, a written offer is made to them. ü
– Any other relevant answer related to the selection procedure as a human resources activity.
AND/OR
BS Grade 12 TG.indb 55 2022/03/14 10:18:42

Option 2
– Receive documentationü, for example, application forms and sort it according to the criteria of the job. ü
– Evaluate CVsü and create a shortlist/screen the applicant. ü
– Check information in the CVsü and contact references. ü
– Conduct preliminary interviewsü to identify applicants who are not suitable for the job, although they meet
the requirements. ü
– Assess/Test candidatesü who have applied for senior positions/to ensure the best candidate is chosen. ü
– Conduct interviewsü with shortlisted candidates. ü
– A written employment offer is made ü to the selected candidate(s). ü
– Any other relevant answer related to the selection procedure as a human resources activity.
Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 2
1.1.2 6
1.1.3 6
1.1.4 6
TOTAL 20
QUESTION 1
1.1 Induction and benefits of induction
1.1.1 Meaning of induction
– Induction is the process of introducing new employeesü to a business/work environment/ organisation. ü
– New employees should be familiarisedü with their new physical work environment/organisational culture/
products and services. ü
– Employees should be informedü about the processes/procedures/methods of the business. ü
– Employees should have a basic knowledgeü of the expectations of the jobü. /Understand their roles/
responsibilitiesü of the new job. ü
– Ensure that employees are well conversantü with the safety regulations/rules/policies of the business. ü
– Any other relevant answer related to the meaning of induction.
Max (4)
1.1.2 Benefits of induction from the scenario
– Timber Traders is experiencing a significant reduction in the staff turnover rate as new employees have
received proper induction. ü
– This has resulted in increased productivity and efficiency in the workplace.ü
2 Mark the first TWO (2) answers only.
(2 × 1) (2)
1.1.3 Other benefits of induction for the business
– New employees who are familiar with the business’s policies/procedures may easily adapt to their new
work environment. üü
– New employees learn more about the business and understand their role in the business/what is expected
in the job. üü
– Minimises the need for on-going training and development. üü
– Improved/Better focused training may be provided based on the results obtained from the induction process. üü
– New employees may feel part of the team resulting in positive morale/motivation. üü
– Any other relevant answer related to the benefits of induction for businesses.
Max (6)
BS Grade 12 TG.indb 56 2022/03/14 10:18:42

1.1.4 Aspects that must be included in the induction programme
– Safety regulations and rules. üü
– Overview of the business. üü
– Tour of the premises/business. üü
– Information about the business products/services. üü
– Meeting with senior management who will explain the company’s vision/mission/values/job analysis/
daily tasks. üü
– Introduction to key people and immediate colleagues. üü
– Conditions of employment, for example, working hours/leave application process/perks/disciplinary
procedures, etc. üü
– Discussion of the employment contract and conditions of service. üü
– Discussion of personnel policies, for example, making private phone calls/using the Internet, etc. üü
– Any other relevant answer related to the aspects that must be included in the induction programme.
NOTE: Mark the first FOUR (4) only.
(4 × 2) (8)
Breakdown of marks
Question 1 Marks
1.1.1 4
1.1.2 2
1.1.3 6
1.1.4 8
TOTAL 20
QUESTION 1
1.1 Importance of training in human resources
1.1.1 Importance of training in human resources from the scenario
– BBT has invested in training to show employees that they are valued. ü
– An effective training programme exists at BBT in order for employees to enhance their current skills.ü
NOTE: Do not award marks for quotes that are incomplete.
(2 × 1) (2)
1.1.2 Other ways in which the importance of training in human resources could be displayed at the business
– The employee who receives the necessary training is able to perform in their job/improve performance in
their job./Employees are more knowledgeable and can perform tasks more efficiently. üü
– Productivity usually increases when the human resources function implements training courses. üü
– Overall profitability of the business will improve because of effective/regular training. üü
– Ongoing training and upskilling of the workforce, encourages creativity. üü
– Contributes positively towards the aims/compliance of the SDA. üü
– Any other relevant answer related to other ways in which the importance of training in human resources
could be displayed by businesses.
NOTE: Do not allocate marks for answers quoted in QUESTION 1.1.1.
Max (6)
1.1.3 Placement procedure
– The Business should outline specificü responsibilities/expectations/requirements of the new position. ü
– Determine the successful candidate’s strengths/weaknesses/skills/interests/competenciesü by subjecting
the candidate to various psychometric tests. ü
– Determine the relationship betweenü the position and the competencies of the new candidate. ü
– Any other relevant answer related to the placement procedure.
Max (6)
BS Grade 12 TG.indb 57 2022/03/14 10:18:42

Breakdown of marks
Question 1 Marks
1.1.1 2
1.1.2 6
1.1.3 6
TOTAL 14
QUESTION 1
1.1 Salary determination methods and the link between salary determination and the BCEA.
1.1.1 Methods of salary determination from the scenario
Employee Methods of salary Motivations
determination
Okhule Piecemeal üü Okuhle is remunerated
according to the number of
health plans sold. ü
Junaid Time-related üü Junaid the cashier, is paid for
the number of hours he spends
at work. ü

2 Award marks for the correct method of salary determination even if the quote is incomplete.
3 Do not award marks for the motivation if the methods of salary determination were
Max (6)
1.1.2 Link between salary determination and the BCEA
– The BCEA sets out conditions that ensureü fair labour and human resources practices takes place within
the business. ü
– According to the BCEA, businesses may useü different remuneration methods to pay their employees. ü
– Payment of salaries should be based on whetherü the employee is permanent or employed on a
fixed contract. ü
– Businesses are supposed to deduct income tax (PAYE)ü and other salary deductions from the employees’
taxable salaries. ü
– The BCEA outlines legalities of the employment contractü, such as work hours/overtime, which may affect
salary determination. ü
– The BCEA also regulates the minimum wage rates per sectorü and the business must therefore ensure that
remuneration reflected in the employment contract is not below minimum wages. ü
– Any other relevant answer related to the link between salary determination and the BCEA.
Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 6
1.1.2 6
TOTAL 12
BS Grade 12 TG.indb 58 2022/03/14 10:18:42

QUESTION 1
1.1 Fringe benefits
1.1.1 Examples of employee benefits other than UIF
– Medical Aid Fund/Health Insurance Fund ü
– Pension Fund ü
– Provident Fund ü
– Funeral benefits ü
– Car/Travel/Housing/Cellphone/Clothing allowance ü
– Performance based incentives ü
– Issuing of bonus shares ü
– Staff discount/Free or low-cost meal/Canteen facilities ü
– Any other relevant answer related to employee benefits other than UIF.
NOTE: Mark the first FOUR (4) answers only.
Max (4)
1.1.2 Disadvantages of fringe benefits from the scenario
– Magdalena Krombie Attorneys is experiencing cash flow problems due to high expenditure costs incurred
on fringe benefits. ü
– This has caused conflict because of the corruption associated with unfair allocation of fringe benefits.ü
(2 × 1) (2)
1.1.3 Other disadvantages of fringe benefits for the business
– Administrative costs increase ü as benefits need to be correctly recorded for tax purposes. ü
– Decreases business profits, ü as incentive/package/remuneration costs are higher. ü
– Workers only stay with the business for fringe benefits ü and may not be committed/loyal to the
tasks/business. ü
– Businesses who offer employees different benefit plans ü may create resentment to those who receive less
benefits resulting in lower productivity. ü
– Businesses who cannot offer fringe benefits ü fail to attract skilled workers. ü
– Businesses have to pay advisors/attorneys to help them ü create benefit plans that comply with the law. ü
– Any other relevant answer related to other disadvantages of fringe benefits for the business.
NOTE: Do not award marks for answers quoted in QUESTION 1.1.2.
Max (6)
1.1.4 UIF as a benefit required by law
– UIF offers short-term financial assistance to workers üwhen they become unemployed or are unable to
work due to illness/maternity/adoption/parental leave. ü
– UIF assists the dependantsü of a contributing worker who has died. ü
– By law, employees are required to contribute 1%ü of their basic salary towards UIF. ü
– Employers are also required to contribute 1%ü of an employee’s basic salary towards UIF. ü
– Employers pay the 2% directlyü to UIF on behalf of the employees. ü
– Contributions are paid toü the Unemployment Insurance Fund (UIF) or the South African Revenue
Services (SARS). ü
– Any other relevant answer related to UIF as a benefit required by law.
Max (8)
Breakdown of marks
Question 1 Marks
1.1.1 4
1.1.2 2
1.1.3 6
1.1.4 8
TOTAL 20
BS Grade 12 TG.indb 59 2022/03/14 10:18:42

QUESTION 1
1.1 Legislations that have an implication on the human resources function
1.1.1 Legislations that have an implication on the human resources function from the scenario
LEGISLATIONS MOTIVATIONS
Employment Equity Act/EEA üü Kopano Media takes pride in promoting
affirmative action in the business. ü
Basic Conditions of Employment Act/BCEA üü Their employees are entitled to six weeks sick
leave during a three-year cycle. ü
Labour Relations Act/LRA üü The management of KM allows their employees
to participate in decision making. ü

2 Award marks for the correct Act/legislation even if the quote is incomplete.
3 Do not award marks for the motivation, if the Acts/legislations were incorrectly identified.
4 Mark the first THREE (3) Legislations/Acts with the corresponding motivation only.
Max (9)
1.1.2 Implication of the SDA on the human resources function
– The human resources function/HRM should interpret the aims and requirements of the SDAü and adapt
workplace skills training programmes accordingly. ü /Training conducted by the business/HRM ü should be
aligned to the SDA. ü
– Identify the training needs of the employeesü and provide them with training opportunities so that they
will perform their tasks efficiently. ü
– Use the National Qualification Framework/NQFü to assess the skills levels of employees. ü
– Interpret/Implement the aims/requirements of the frameworkü for the National Skills Development
Strategy (NSDS). ü
– Assist managers in identifying skills/training needsü to help them to introduce/promote learnerships. ü
– The business should contribute 1% of their salary billü to the Skills Development Levy (SDL). ü
– Ensure training in the workplaceü is formalised/structured. ü
– Appoint a full/part time consultantü as a Skills Development Facilitator (SDF). ü
– Any other relevant answer related to the implication of the SDA on the human resources function.
NOTE: Do not award marks for answers quoted in QUESTION 1.1.1 under the SDA.
Max (8)
Breakdown of marks
Question 1 Marks
1.1.1 9
1.1.2 8
TOTAL 17
BS Grade 12 TG.indb 60 2022/03/14 10:18:42

QUESTION 1
DOWN ACROSS
1 External recruitment üü 2 Interview üü
3 Dismissal üü 4 Employment Equity Act üü
5 Minimum wages üü 6 Job analysis üü
7 Preliminary sifting interviews üü 8 Time-related üü
9 Resignation üü 10 Induction üü
(10 × 2) (20)
Breakdown of marks
Question 1 Marks
20
TOTAL 20
QUESTION 2
DOWN ACROSS
1 Screening üü 2 Employment contract üü
3 Interviewee üü 4 Redundancy üü
5 Unemployment Insurance Fund üü 6 Selection procedure üü
7 Piecemeal üü 8 Labour Relations Act üü
9 Internal recruitment üü 10 Placement üü
(10 × 2) (20)
Breakdown of marks
Question 2 Marks
20
TOTAL 20
QUESTION 3
3.1 Multiple choice
3.1.1 D üü
3.1.2 A üü
3.1.3 C üü
3.1.4 C üü
3.1.5 B üü
(5 × 2) (10)
3.2.1 I üü
3.2.2 H üü
3.2.3 D üü
3.2.4 E üü
3.2.5 A üü
(5 × 2) (10)
Breakdown of marks
Question 3 Marks
3.1 10
3.2 10
TOTAL 20
BS Grade 12 TG.indb 61 2022/03/14 10:18:42

QUESTION 4
4.1 Aspects that should be included in an employment contract
– Personal details of the employee. ü
– Details of the business/employer for example, name/address, etc. ü
– Job title/Position ü
– Job description for example, duties/working conditions/responsibilities. ü
– Job specification for example, formal qualifications/experience/willingness to travel. ü
– Date of employment/commencement of employment. ü
– Place where employee will spend most of his/her working time/conduct work activities. ü
– Hours of work, for example, normal time/overtime. ü
– Remuneration, for example, weekly/biweekly/fortnightly/monthly pay. ü
– Benefits/Fringe benefits/Perks/Allowances. ü
– Leave, for example, sick/maternity/annual/adoption leave/family responsibility leave. ü
– Employee deductions (compulsory/non-compulsory). ü
– Period of contract/Details of termination. ü
– Probation period. ü
– Signatures of both the employer and employee. ü
– List of documents that form part of the contract, for example, appointment letter/code of conduct/ethics. ü
– Disciplinary policy, for example, rules and disciplinary procedure for unacceptable behaviour. ü
– Any other relevant answer related to aspects that should be included in an employment contract.
NOTE: Mark the first TWO (2) only.
(2 × 1) (2)
4.2 Legislations that have an implication on the human resources function from given statements
4.2.1 Skills Development Act/SDA üü
4.2.2 Labour Relations Act/LRA üü
4.2.3 Employment Equity Act/EEA üü
4.2.4 Basic Conditions of Employment Act/BCEA üü (8)
4.3 Meaning of recruitment

– Recruitment is the process used by a business to identifyü certain vacancies in the business and attract suitable
candidates for it. ü
– Recruitment aims to find candidates who have the necessaryü skills/knowledge/qualifications/competencies/
experience to fill the vacancy. ü
– Businesses may choose to use an internal or external method of recruitment üdepending on the nature/
requirements of the vacancy. ü
– It is an on-going processü as employees leave their jobs for other jobs/achieve promotions/retire/as new
technological skills are required. ü
– It involves the process of actively seeking out/finding candidates for certain vacanciesü from inception to the
successful integration of the candidate/recruit into the business. ü
– Any other relevant answer related to the meaning of recruitment.
Max (4)
4.4 Selection procedure
4.4.1 Steps of the selection procedure from the scenario
– The business received documentation such as the application forms. ü
– In the process, LML, conducted interviews with short listed candidates. ü
(2 × 1) (2)
4.4.2 Other steps of the selection procedure
Option 1
– Determine fair assessment criteria on which selection will be based. üü
– Check that applicants are not submitting false documents such as forged certificates/degrees/
achievements. üü
– Make a preliminary list of all applicants who qualify for the post. üü
BS Grade 12 TG.indb 62 2022/03/14 10:18:42

– Screen and check references, for example, check applicants’ criminal records/credit history/social
media. etc. üü
– Conduct preliminary interviews to identify suitable applicants. üü
– Inform all applicants about the outcome of the application. üü
– Compile a shortlist of approximately five people. üü
– Shortlisted candidates may be subjected to various types of selection tests, for example, skills test. üü
– Once candidates have been selected, a written offer is made to them. üü
– Any other relevant answer related to the selection procedure.
OR
Option 2
– Evaluate CVs and create a shortlist/screen the applicant. üü
– Check information in the CVs and contact references. üü
– Conduct preliminary interviews to identify applicants who are not suitable for the job, although they meet
the requirements. üü
– Assess/Test candidates who have applied for senior positions/to ensure the best candidate is chosen. üü
– A written employment offer is made to the selected candidate(s). üü
2 Do not award marks for answers quoted in QUESTION 4.4.1.
Max (6)
4.4.3 Screening as part of the selection procedure
– Check application documents of candidates/applicantsü against the requirements of the job. ü
– Candidates/applicants who meet the minimum requirementsü are separated from others. ü
– Conduct/perform background/credit/reference checksü of applicants who qualify for the job. ü
– Prepare a shortlistü of suitable candidates after screening. ü
– Any other relevant answer related to screening as part of the selection procedure.
Max (6)
4.5 Distinction between the TWO salary determination methods
PIECEMEAL üü TIME-RELATED üü
Workers are paid according to the number of items/ Workers are paid for the amount of time they spend
units produced/actions performed. ü at work/on a task. ü
Workers are not remunerated for the number of Workers with the same experience/ qualifications
hours worked, regardless of how long it takes them are paid on salary scales regardless of the amount of
to make the items. ü work done. ü
Mostly used in factories particularly in the textile/ Many private and public sector businesses use
technology industries. ü this method. ü
Any other relevant answer related to the piecemeal Any other relevant answer related to the time-related
salary determination method. salary determination method.
Method 2 Method 2
Submax 3 Submax 3

2 The distinction does not have to link but must be clear.
3 Award a maximum of THREE (3) marks if the distinction is not clear/mark either piecemeal or
time-related only.
Max (6)
4.6 Impact of fringe benefits on businesses
– Attractive fringe benefit packages may result inü higher employee retention/reduces employee turnover/low
attrition rates. ü
– Attracts/Retains qualified/skilled/experienced employeesü who may positively contribute towards the business
goals/objectives. ü
BS Grade 12 TG.indb 63 2022/03/14 10:18:42

– Increases employee job satisfaction/loyalty/moraleü as they may be willing to go the extra mile. ü
– Improves productivityü resulting in higher profitability. ü
– Businesses save moneyü as benefits are tax deductible. ü
– Fringe benefits can be used as leverageü for salary negotiations. ü
– Any other relevant answer related to the positives/advantages of fringe benefits for businesses.
AND/OR
– Fringe benefits are additional costsü that may result in cash flow problems for the business. ü
– Administrative costs increaseü as benefits need to be correctly recorded for tax purposes. ü
– Decreases business profitsü, as incentive/package/remuneration costs are higher. ü
– Creates conflict/leads to corruptionü if fringe benefits are allocated unfairly. ü
– Workers only stay with the business for fringe benefitsü and may not be committed/loyal to the tasks/business. ü
– Businesses who offer employees different benefit plansü may create resentment to those who receive less benefits
resulting in lower productivity. ü
– Businesses who cannot offer fringe benefitsü fail to attract skilled workers. ü
– Businesses have to pay advisors/attorneysü to help them create benefit plans that comply with the law. ü
– Any other relevant answer related to the negatives/disadvantages of fringe benefits for businesses.
Max (6)
Breakdown of marks
Question 4 Marks
4.1 2
4.2 8
4.3 4
4.4.1 2
4.4.2 6
4.4.3 6
4.5 6
4.6 6
TOTAL 40
QUESTION 5
5.1 Sources of external recruitment
– Printed media, for example, newspapers/flyers/magazines ü
– Electronic media, for example, radio/TV ü
– Social media/Social networks/Internet/Business websites ü
– Recruitment agencies ü
– Walk-ins ü
– Headhunting ü
– Professional associations ü
– Networking ü
– Educational/Training institutions ü
– Posters/Bill boards just outside the business ü
– Any other relevant answer related to sources of external recruitment.
Max (4)
5.2 Induction programme
5.2.1 Aspects included in the induction programme from the scenario
– The induction programme includes safety rules and regulations. ü
– Information about the services have also been included. ü
– An overview of the JRL will be provided. ü
(3 × 1) (3)
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5.2.2 Other aspects that must be included in the induction programme of JRL
– Tour of the premises/business. üü
– Meeting with senior management who will explain the company’s vision/mission/values/job analysis/
daily tasks. üü
– Introduction to key people and immediate colleagues. üü
– Conditions of employment, for example, working hours/leave application process/perks/disciplinary
procedures, etc. üü
– Discussion of the employment contract and conditions of service. üü
– Discussion of personnel policies, for example, making private phone calls/using the Internet, etc. üü
– Any other relevant answer related to other aspects that must be included in the induction programme.
2 Do not award marks for answers quoted in QUESTION 5.2.1.
Max (4)
5.2.3 Purpose of induction
– Introduce new employees to management/colleaguesü to establish professional relationships with fellow
colleagues at different levels. ü
– Provide new employees with a tour/informationü about the layout of the building/office. ü
– Familiarise new employeesü with the organisational structure/their supervisors/direct managers. ü
– Create opportunities for new employeesü to experience/explore different departments. ü
– Explain safety regulations/rulesü, so that new employees will understand their roles/responsibilities in
this regard. ü
– Communicate information about the products/services üoffered by the business. ü
– Ensure that employees understand their roles/responsibilitiesü so that they will be more
efficient/productive. ü
– Communicate business policies regardingü ethical/professional conduct/procedures/employment contract/
conditions of employment, etc ü
– Any other relevant answer related to the purpose of induction.
Max (4)
5.3 Placement procedure as a human resources activity
– The Business should outline specific responsibilities/expectations/requirements of the new position. üü
– Determine the successful candidate’s strengths/weaknesses/skills/interests/competencies by subjecting the candidate
to various psychometric tests. üü
– Determine the relationship between the position and the competencies of the new candidate. üü
– Any other relevant answer related to the placement procedure as a human resources activity.
Max (4)
5.4 Termination of the employment contract
5.4.1 Reasons for the termination of the employment contracts from the scenario
REASONS FOR THE TERMINATION OF MOTIVATIONS
EMPLOYMENT CONTRACTS
1. Retirement üü Liyema’s contract was terminated as he reached a
predetermined age. ü
2. Contract duration üü The time period of Maria’s contract has expired.
ü
3. Redundancy üü Salama Industries no longer has work for Rodger
as he has a duplicate role in the administration
department. ü

2 Award marks for the correct reason for the termination of the employment contracts even
if the quote is incomplete.
3 Do not award marks for the motivation, if the reasons for the termination of the
employment contracts were incorrectly identified.
Max (9)
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5.4.2 Legal requirements of an employment contract
– An employment contract is an agreementü between the employer and the new employee and is legally binding.ü
– Employer and employee must agreeü to any changes to the contract.ü
– Aspects of the employment contractü can be renegotiated during the course of employment. ü
– No party may unilaterally changeü aspects of the employment contract. ü
– The employer and the new employeeü must both sign the contract. ü
– The employment contract should includeü a code of conduct/code of ethics. ü
– The employer/employer representative must explain the terms and conditionsü of the employment contract
to the employee. ü
– It may not contain any requirementsü that are in conflict/does not comply with the BCEA. ü
– Conditions of employment/duties/responsibilities/rolesü of the employees must be stipulated clearly. ü
– The remuneration package/including benefitsü must be clearly indicated. ü
– Any other relevant answer related to the legal requirements of an employment contract.
Max (6)
Option 1
– Determine fair assessment criteria on which selection will be based. üü
– Use the assessment criteria to assess all CVs/application forms received during recruitment/Conduct preliminary
screening, which is sorting the applications received according to the criteria for the job. üü
– Check that applicants are not submitting false documents such as forged certificates/degrees/achievements.
– Make a preliminary list of all applicants who qualify for the post. üü
– Screen and check references, for example, check applicants’ criminal records/credit history/social media. etc. üü
– Conduct preliminary interviews to identify suitable applicants. üü
– Inform all applicants about the outcome of the application. üü
– Compile a shortlist of approximately five people. üü
– Invite the shortlisted applicants/candidates for an interview. üü
– Shortlisted candidates may be subjected to various types of selection tests, for example, skills test. üü
– Once candidates have been selected, a written offer is made to them. üü
– Any other relevant answer related to the selection procedure that businesses should follow as a human
resources activity.
OR
Option 2
– Receive documentation, for example, application forms and sort it according to the criteria of the job. üü
– Evaluate CVs and create a shortlist/screen the applicant. üü
– Check information in the CVs and contact references. üü
– Conduct preliminary interviews to identify applicants who are not suitable for the job, although they meet
the requirements. üü
– Assess/Test candidates who have applied for senior positions/to ensure the best candidate is chosen. üü
– Conduct interviews with shortlisted candidates. üü
– A written employment offer is made to the selected candidate(s). üü
– Any other relevant answer related to the selection procedure that businesses should follow as a human resources activity.
Max (6)
Breakdown of marks
Question 5 Marks
5.1 4
5.2.1 3
5.2.2 4
5.2.3 4
5.3 4
5.4.1 9
5.4.2 6
5.5 6
TOTAL 40
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QUESTION 6
6.1 Examples of employee benefits
– Medical Aid Fund/Health Insurance Fund ü
– Pension Fund ü
– Provident Fund ü
– Funeral benefits ü
– Car/Travel/Housing/Cellphone/Clothing allowance ü
– Performance based incentives ü
– Issuing of bonus shares ü
– Staff discount/Free or low-cost meal/Canteen facilities ü
– Any other relevant answer related to examples of employee benefits.
NOTE: Mark the first THREE (3) answers only.
(3 × 1) (3)
6.2 Distinction between the TWO components of job analysis
JOB DESCRIPTION üü JOB SPECIFICATION üü
Describes duties/responsibilities/of a specific job.ü Describes the minimum acceptable personal qualities/
skills/ qualifications needed for the job. ü
Written description of the job and its requirements. / Written description of specific qualifications/ skills/
Summary of the nature/type of job. ü experience needed for the job. ü
job for example, job title/duties/working conditions/ fill the position, for example, formal qualifications /
locations of the place of work/relationship of the job willingness to travel/work unusual hours, etc. ü
with other jobs in the business, etc. ü
Any other relevant answer related to job description. Any other relevant answer related to the job
specification.
Component 2 Component 2
Submax 3 Submax 3

3 Award a maximum of THREE (3) marks if the distinction is not clear/Mark either job description
or job specification only.
Max (6)
6.3 Methods of recruitment
6.3.1 Method of recruitment from the scenario
External recruitment üü
Motivation:
Dieketseng Kalahari Tours approached a recruitment agency to fill the vacant post of a marketing director. ü
NOTE: 1 Award marks for the correct method of recruitment if the quote is incomplete.
2 Do not award marks for the motivation, if the method of recruitment was incorrectly identified.
Max (3)
6.3.2 Impact of external recruitment
– New candidates bring new talents/ideas/experiences/skills/knowledge into the business. 
– It may help the business to meet affirmative action/EEA and BBBEE targets. 
– There is a larger pool of candidates from which to choose. 
– There is a better chance of getting a suitable candidate with the required skills/qualifications/
competencies/experience who do not need much training/development which reduces costs. 
– Minimises unhappiness/conflict amongst current/existing employees who may have applied for
the post. 
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– Overall efficiency/productivity may occur if the new worker actively adds value to the business. 
– Any other relevant answer related to the positives/advantages of external recruitment on businesses.
AND/OR
– External sources can be expensiveü, for example, recruitment agencies’ fees/advertisements in
newspapers/magazines. ü
– The selection process may result inü an ineffective/incompetent candidate being chosen. ü
– Information on CVs/refereesü may not be reliable/may be falsified. ü
– Recruitment process takes longer/is more time consuming and expensiveü as background checks must
be conducted. ü
– New candidates generally take longerü to adjust to a new work environment. ü
– In-service training may be needed which decreases productivityü during the time of training/increases costs
of the business. ü
– Many unsuitable applicationsü may slow down the selection process. ü
– Any other relevant answer related to the negatives/disadvantages of external recruitment on businesses.
Max (6)
6.4 Implication of the EEA on the human resources function
– The HRM must promote/provideü equal opportunities/promote equality in the workplace. ü
– The HRM must report to the Department of Labourü on the progress regarding the implementation of the
employment equity plan. ü
– Compile employment equity plansü that indicate how they will implement affirmative action. ü /Ensures that the
human resources function promotesü affirmative action/establishes/achieves employment equity plans. ü
– Assign a manager to ensure that the employment equity planü will be implemented/regularly monitored. ü
– Ensure that affirmative actionü promotes diversity in the workplace. ü
– Any other relevant answer related to the implication of the EEA on the human resources function.
Max (6)
6.5 Role of the interviewer
6.5.1 Roles fulfilled by the interviewer before the interview from the scenario
– The CEO of Amy Eksteen Distributors has booked and prepared the venue for the interview. ü
– The panel members have been notified about the date and time of the interview. ü
(2 × 1) (2)
6.5.2 Other roles of the interviewer before the interview
– The interviewer should develop a core set of questions based on the skills/knowledge/ability/
competency required.üü
– Check the application/verify the CV of every candidate for anything that may need to be explained. üü
– Set the interview date/Ensure that all interviews take place on the same date, if possible. üü
– Inform all shortlisted candidates about the date and place of the interview. üü
– Allocate the same amount of time to interview each candidate on the program. üü
– Any other relevant answer related to other roles of the interviewer before the interview.
Max (4)
6.5.3 Purpose of an interview
– Determines a candidate’sü suitability for the jobü/Determines whether the candidateü would add value to
the business. ü
– Helps the employer in choosing/making an informed decisionü about the most suitable candidate for
the job. ü
– Matches information providedü by the applicant to the job requirements. ü
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– Verifies to a certain degree the accuracyü regarding information presented on the CV. ü
– Any other relevant answer related to the purpose of the interview.
Max (4)
6.5.4 Role of the interviewee during the interview
– Greet the interviewer by nameü with a solid handshake and a friendly smile. ü
– Listen carefully to the questionsü before responding. ü
– Make eye contactü and have good posture/body language. ü
– Show confidenceü and have a positive attitude/be assertive. ü
– Be inquisitiveü and show interest in the business. ü
– Ask clarityü seeking questions. ü
– Show respect and treat the interviewü with its due importance. ü
– Be honest about mistakesü and explain how you dealt with it. ü
– Know your strengths and weaknessesü and be prepared to discuss it. ü
– Thank the interviewer for the opportunityü given to be part of the interviews. ü
– Any other relevant answer related to the role of the interviewee during the interview.
Max (6)
Breakdown of marks
Question 6 Marks
6.1 3
6.2 6
6.3.1 3
6.3.2 6
6.4 6
6.5.1 2
6.5.2 4
6.5.3 4
6.5.4 6
TOTAL 40
QUESTION 7
7.1 Introduction
– Different methods exist that are used by employers to determine the salary of employees. ü
– The type of salary determination method used/applied by the business depends on the nature/type of jobs that
are required. ü
– Fringe benefits are benefits provided by the business to employees in addition to their salaries. ü
– Some employers may decide to provide fringe benefits universally to all employees or provide different/additional
fringe benefits to executive management. ü
– The business has different reasons for providing employees with fringe benefits, which include amongst others, to
compensate employees for costs related to their work and to improve overall job satisfaction. ü
– The business should ensure that they are knowledgeable regarding the link between salary determination and the
Basic Conditions of Employment Act. ü
– Any other relevant introduction related to salary determination methods/impact of fringe benefits/link between
salary determination and the BCEA/implication of the BCEA on the human resources function.
Any (2 × 1) (2)
7.2 Salary determination methods
Workers are paid according to the number of items/ Workers are paid for the amount of timeü they
unitsü produced/actions performed. ü spend at work/on a task. ü
Workers are not remunerated for the number of Workers with the same experience/qualifications are
hours workedü, regardless of how long it takes them paid on salary scalesü regardless of the amount of
to make the items. ü work done. ü
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Mostly used in factoriesü particularly in the textile/ Many private and public sectorü businesses use this
technology industries. ü method. ü
Any other relevant answer related to the piecemeal Any other relevant answer related to the time-related
salary determination method. salary determination method.
Method 2 Method 2
Submax 6 Submax 6

3 Award a maximum of SIX (6) marks if the distinction is not clear/Mark either piecemeal or time-
related only.
Max (12)
7.3 Impact of fringe benefits
– Attractive fringe benefit packages may result inü higher employee retention/reduces employee turnover/low
attrition rates. ü
– Attracts/Retains qualified/skilled/experienced employeesü who may positively contribute towards the business
goals/objectives. ü
– Increases employee job satisfaction/loyalty/moraleü as they may be willing to go the extra mile. ü
– Improves productivityü resulting in higher profitability. ü
– Businesses save moneyü as benefits are tax deductible. ü
– Fringe benefits can be used as leverageü for salary negotiations. ü
– Any other relevant answer related to the positives/advantages of fringe benefits for businesses.
AND/OR
– Fringe benefits are additional costsü that may result in cash flow problems for the business. ü
– Administrative costs increaseü as benefits need to be correctly recorded for tax purposes. ü
– Decreases business profitsü, as incentive/package/remuneration costs are higher. ü
– Creates conflict/leads to corruptionü if fringe benefits are allocated unfairly. ü
– Workers only stay with the business for fringe benefitsü and may not be committed/loyal to the tasks/business. ü
– Businesses who offer employees different benefit plansü may create resentment to those who receive less benefits
resulting in lower productivity. ü
– Businesses who cannot offer fringe benefitsü fail to attract skilled workers. ü
– Businesses have to pay advisors/attorneysü to help them create benefit plans that comply with the law. ü
– Any other relevant answer related to the negatives/disadvantages of fringe benefits for businesses.
Max (12)
7.4 Link between salary determination and the BCEA
– The BCEA sets out conditions that ensureü fair labour and human resources practices takes place within the
business. ü
– According to the BCEA, businesses may use different remuneration methodsü to pay their employees. ü
– Payment of salaries should be based onü whether the employee is permanent or employed on a fixed contract. ü
– Businesses are supposed to deduct income tax (PAYE) ü and other salary deductions from the employees’
taxable salaries. ü
– The BCEA outlines legalities of the employment contractü, such as work hours/overtime, which may affect
salary determination. ü
– The BCEA also regulates the minimum wage rates per sectorü and the business must therefore ensure that
remuneration reflected in the employment contract is not below minimum wages. ü
– Any other relevant answer related to the link between salary determination and the BCEA.
Max (10)
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7.5 Implication of the BCEA on the human resources function
– Ensures that business practices such as basic conditions of employment within the workplace does not contravene/
violate the provisions of the BCEA. üü
– The human resources manager (HRM) must ensure that all employee contracts are aligned to the provisions of
the BCEA. üü
– Ensures that employees only work 9 hours per day in a 5-day work week/8 hours per day in a 6-day work week. üü
– Ensures that employees are correctly remunerated for overtime/Overtime should not exceed 10 hours per week.
– Ensures that employees have a 60-minute break after five hours of work. üü
– Ensures that employees are entitled to take six weeks paid sick leave during a 36-month cycle. üü
– Ensures that employees receive double their rate if they work on public holidays/Sundays. üü
– Ensures that the business does not participate in child labour practices/does not employ children under the age
of 16. üü
– Any other relevant answer related to implication of the BCEA on the human resources function.
Max (12)
7.6 Conclusion
– The various legislations in South Africa have a direct implication on the human resources function. üü
– Continuous training must take place for human resources managers to keep abreast of current/new legislations/
labour legislations that may influence operations within the human resources function. üü
– The business often employs legal specialists when it comes to correctly implementing the BCEA regarding all human
resources activities. üü
– Any other relevant conclusion related to salary determination methods/impact of fringe benefits/link between salary
determination and the BCEA/implication of the BCEA on the human resources function.
Any (1 × 2) (2)
[40]
7.1 Introduction 2
7.2 Salary determination methods 12
7.3 Impact of fringe benefits 12 Max
7.4 Link between salary determination and the BCEA 10 32
7.5 Implication of the BCEA on the human resources function 12
7.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
QUESTION 8
8.1 Introduction
qualifications/competencies/experience to fill vacancies/available posts. ü
– The human resources department must make use of reliable recruitment procedures/processes/systems to achieve
specific human resources goals. ü
– An interview is a formal meeting where information is exchanged between the interviewer and the interviewee/
respondent/applicant. ü
– Induction is the process of introducing new employees into the workplace. ü
BS Grade 12 TG.indb 71 2022/03/14 10:18:43

– It includes introductory training to the workplace/ organisation which includes valuable information about products/
services/processes/procedures/policies/immediate team and management. ü
– Training is a planned/purposefully organised activity where employees gain knowledge and skills that can improve
their abilities of their job. ü
– Any other relevant introduction related to the recruitment procedure/purpose of the interview/advantages of
induction for businesses/importance of training in human resources.
Any (2 × 1) (2)
– The human resources manager (HRM) should evaluate the job/prepare a job analysis, that includes the job
specification/job description/in order to identify recruitment needs. üü
– The HRM should indicate the job specification/key performance areas to attract suitable candidates. üü
– Choose the method of recruitment, for example, internal/external recruitment, to reach/target the suitable
applicants/ candidates. üü
– If the external recruitment is chosen, the relevant recruitment sources should be selected, for example, recruitment
agencies/tertiary institutions/ newspapers/electronic media, etc. üü
– Vacancies can be internally advertised via internal email/word of mouth/posters/staff notices etc. üü
– External recruitment should be considered if internal recruitment was unsuccessful. üü
– The advertisement should be prepared with the relevant information, for example, the name of the company, contact
details, contact person, etc. üü
– Place the advertisement in the selected media that will ensure that the best candidates apply. üü
– Any other relevant answer related to the recruitment procedure.
Max (12)
8.3 Purpose of the interview
– Determines a candidate’sü suitability for the jobü/Determines whether the candidateü would add value to the
business. ü
– Helps the employer in choosing/making an informed decisionü about the most suitable candidate for the job. ü
– Matches information provided by the applicantü to the job requirements. ü
– Verifies to a certain degree the accuracyü regarding information presented on the CV. ü
– Any other relevant answer related to the purpose of the interview.
Max (12)
8.4 Benefits of induction for businesses
– New employees who are familiar with the business’s policies/proceduresü may easily adapt to their new work
environment. ü
– New employees learn more about the businessü and understand their role in the business/what is expected
in the job. ü
– Increased productivity/efficiencyü and quality of service/performance. ü
– Minimises the need forü on-going training and development. ü
– Improved/Better focused training may be providedü based on the results obtained from the induction process. ü
– New employees may feel part of the teamü resulting in positive morale/motivation. ü
– Reduces staff turnoverü as new employees have been inducted properly. ü
– Any other relevant answer related to the advantages of induction for businesses.
Max (10)
8.5 Importance of training in human resources
– The employee who receives the necessary training is able to perform in their job/improve performance in their job./
Employees are more knowledgeable and can perform tasks more efficiently. üü
– The investment in training that a business makes shows employees that they are valued/appreciated. üü
– An effective training program allows employees to strengthen/improve/enhance their skills. üü
– Productivity usually increases when the human resources function implements training courses. üü
– Overall profitability of the business will improve because of effective/regular training. üü
– Ongoing training and upskilling of the workforce, encourages creativity. üü
BS Grade 12 TG.indb 72 2022/03/14 10:18:43

– Contributes positively towards the aims/compliance of the SDA. üü
– Any other relevant answer related to the importance of training in human resources.
Max (12)
8.6 Conclusion
– Employees are the most valuable asset of the business, and therefore the success of the business is strongly
influenced by sound recruitment processes applied by the human resources function. üü
– Businesses make use of effective induction programmes to ensure that new employees settle in quickly as to
enhance productivity/performance. üü
– Businesses must prioritise that induction is conducted with new employees before they commence workplace
duties. üü
– The human resource function should ensure that all training programmes are aligned to the framework of the Skills
Development Act to develop the skills of the employees. üü
– Any other relevant conclusion related to the recruitment procedure/purpose of the interview/advantages of induction
for businesses/importance of training in human resources.
Any (1 × 2) (2)
[40]
8.1 Introduction 2
8.2 Recruitment procedure 12
8.3 Purpose of the interview 12 Max
8.4 Benefits of induction for businesses 10 32
8.5 Importance of training in human resources 12
8.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
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TOPIC 3 Ethics and professionalism
How to introduce the topic Specific strategies to teach/approach

the topic
• Recap on the meanings of ethics and • Involve learners in discussions which they may have
professionalism. Learners already did it in observed in the world around them.
grade 11. • Indicate the key words in the distinction between ethical
• Emphasise the differences between the and professional behaviour.
two concepts. Use visual aids like pictures, • Get some background information on reasons why the
newspapers, magazines, etc. to demonstrate it. King Code principles were introduced. Learners must
• Have a class discussion on examples of understand the reasoning for it and then learn how to
ethical, unethical, professional and apply it in the business.
unprofessional behaviour. • The examination guidelines (EG) indicates three unethical
and three unprofessional business practices. The learners
must first know the meaning of the practice, then
understand the challenge it poses to the business and lastly
strategies on how the business can deal with the unethical
or unprofessional business practice.
• Ethical behaviour has to do with actions of • For informal assessment learners can identify unethical and
the business and professional behaviour with unprofessional practices from newspapers.
actions of the employee. • The following are different types of questions from
• When learners have to answer questions previous NCS papers.
on ways in which professional, responsible, • June 2019 Question 9 – essay question
ethical and effective business practice should
• Nov 2019 Question 4.7 – application of King Code
be conducted is must be answered holistically
principles
and not be split into parts.
• Nov 2019 Question 4.8 – dealing with unethical/
• When learners must differentiate between
unprofessional business practices
two concepts it is better to use a table to
show the differences.
• If there are many facts under a heading,
learners may scaffold the facts on the above
and study only FIVE or SIX facts from all of
those given.
QUESTION 1
1.1.1 Ethical behaviourüü
1.1.2 code of conductüü
1.1.3 professional behaviourüü
(3 × 2) (6)
1.2.1 Unprofessional actions from the scenario
“He noticed that employees are not polite to customers.”ü
“He also observed that senior staff were always late”ü
NOTE: 1 Mark the first TWO (2) only.
2 Do not award marks for quotes that are incomplete.
(2)
BS Grade 12 TG.indb 74 2022/03/14 10:18:43

1.2.2 Examples of ethical behaviour
– The business is telling the truth during a public relation crises to overcome the business’s issue. ü
– Businesses keep promises to their employees, partners and customers. ü
– The business shows loyalty when they make decisions that will also benefit their staff, partners, investors
and customers. ü
– The business shows fairness when it exercises its power justly to all its stakeholders.
– The business operates within the law and other restrictions. ü
– They ensure that the environment is not polluted during their production process. ü
– Not engaging in illegal business practices like price fixing. ü
– They do not make use of child labour. ü
– Any other relevant answer related to examples of ethical behaviour.
NOTE: Mark the first THREE (3) answers only. (3 × 1) (3)
1.2.3 Distinction between ethical behaviour and unprofessional behaviour

ETHICAL BEHAVIOUR PROFESSIONAL BEHAVIOUR
Refers to the principlesü of right and wrong/ Refers to what is right/wrong/acceptable üin a
acceptable in society.ü business.ü
Conforms to a set of valuesü that are morally Set of standardsü of expected behaviour.ü
acceptable.ü
Forms part of a code of conductü to guide Applying a code of conductü of a profession or
employees to act ethically.ü business.ü
Focuses on developing a moral compassü for Focuses on upholding the reputationü of a
decision making.ü business/profession.ü
Involves following the principles of right and Includes guidelinesü on employees’ appearance/
wrongü in business activities/practices/dealings.ü communication/attitude/responsibility.ü
Any other relevant answer related to the difference between ethical and professional behaviour.

3 Award a maximum of FOUR (4) marks if the distinction is not clear/Mark either ethical
or professional behaviour only. Max (8)
1.3 Examples of unethical behaviour

– Dumping pollutants into the water supplyü rather than cleaning up the pollution properly ü
– Releasing toxins into the airü in levels above what is permitted by the Environmental Protection Agency. ü
– Deliberately falsifying information ü on tax returns. ü
– Classifying an employee as a contractor ü to reduce payroll taxes and avoiding other compulsory deductions. ü
– Engaging in price fixing ü to force smaller competitors out of business. ü
– Using bait and switch or false advertising tacticsü to lure customers in or convince them to buy a product. ü
– Any other relevant answer related to examples of unethical behaviour of businesses.
Max (8)
Breakdown of marks
Question 1 Marks
1.1 6
1.2.1 2
1.2.2 3
1.2.3 8
1.3 8
TOTAL 27
Topic 3 Ethics and professionalism 75
BS Grade 12 TG.indb 75 2022/03/14 10:18:43

QUESTION 1
1.1.1 King Code principal from the scenario
Transparency
Motivation: Some shareholders were not aware of the Annual General Meeting.ü (3)
1.1.2 Application of Transparency as a King Code principal

– Decisions/Actions must be clearü to all stakeholders. ü
– Staffing and other processesü should be open and transparent. ü
– Employees/Shareholders/Directors should be awareü of the employment policies of the business. ü
– Auditing and other reportsü must be accurate/ available to shareholders/employees. ü
– Regular audits should be doneü to determine the effectiveness of the business. ü
– Business deals should be conducted openlyü so that there is no hint/sign of dishonesty/corruption. ü
– Businesses should give details of shareholders’ voting rights to themü before/at the Annual General Meeting
(AGM). ü
– The board of directors must report on both the negative and positive impactü of the business on the community/
environment. ü
– The board should ensure that the company’s ethicsü are effectively implemented. ü
– Any other relevant answer related to the application of the principle of transparency.
NOTE: Do not take the answer identified in QUESTION 1.1.1 as correct for QUESTION 1.1.2. Max (6)
1.2 Ways in which professional, ethical and effective business practice should be conducted.
– Business decisions and actions must be clear/transparent to all stakeholders.
– Businesses should be accountable /responsible for their decisions and actions/ patent rights. 
– The business should hire honest/trustworthy accountants/financial officers with good credentials to ensure
transparent recording and financial statements. 
– The payment of taxes must be regular/timeous and the business must disclose all needed information to SARS and
not finding loopholes to avoid paying taxes. 
– The business should draw up a code of ethics/conduct. This document must states acceptable behaviour in
the business. 
– There must be on-going development and training for all employees of the business. 
– Performance management systems/Appraisals should be in place to motivate employees of the business. 
– There must be adequate internal controls/monitoring/evaluation to ensure accountability of the business. 
– The business’s salaries and wages must be fair and in line with the requirements of the BCEA. Businesses must also
remunerate employees for all work done and for working overtime. 
– Businesses must take care of the environment and use green policies in the workplace such as recycling paper,
responsible disposal of waste material and safe energy. 
– The business must not start a business venture at someone else’s expense with the ideas of other businesses/
individuals and respect intellectual property of other businesses. üü
– Businesses should treat all their employees equally, regardless of their race/colour/age/gender/disability etc.
They must also adhere to the requirement of EEA act. üü
– Provide good quality goods and services to customers and pay attention to the safety of customers as well as give
clear information to the customers to make informed decisions. üü
– Any other relevant answer related to the ways in which professional, ethical and effective business practises
must be conducted. Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 3
1.1.2 6
1.2 6
TOTAL 15
BS Grade 12 TG.indb 76 2022/03/14 10:18:43

QUESTION 1
1.1 Unethical and unprofessional business practices from the scenario.
UNETHICAL BUSINESS PRACTICES MOTIVATIONS
1. Unfair advertisingüü PMP advertised a 30% discount for the first 20
buyers, which was never granted.” ü
2. Tax evasionüü The company does not declare all its income
to SARS. ü
UNPROFESSIONAL BUSINESS PRACTICES MOTIVATIONS
3. Sexual harassmentüü Peter promised Sheila, a position as the new secretary
if she would have a relationship with him. ü
4. Unauthorised use of workplace resourcesüü He uses the business truck for private trips. ü
5. Abuse of work timeüü Alfred, the truck driver, does not always return to the
factory after making deliveries.ü
Max (15)
NOTE: D
o not award marks for motivation if the unethical/unprofessional business practice were
identified incorrectly
Breakdown of marks
Question 1 Marks
1.1 15
TOTAL 15
QUESTION 1
1.1 Unprofessional/Unethical business practices from the scenario
DEALING WITH TYPES OF UNETHICAL AND
CHALLENGES TYPES
UNPROFESSIONAL BUSINESS PRACTICES
(1.1.1) (1.1.2)
(1.1.3)
He promised Sexual harassment üü • Every business must implement internal complaints and
shares to disciplinary proceduresüü
Jolene, the • They must educate employers on sexual harassment matters.üü
accountant, • The business must formulate a policy regarding
in exchange sexual harassment.üü
for her having • They must create a good working environment where all
a relationship employees’ rights and dignity are respected. An internal
with him. ü investigation should be conducted to determine the
seriousness of the harassment.üü
• Serious cases/matters of sexual harassment should be
reported to the appropriate institutions such as the South
African Police Services (SAPS).üü
• Businesses must ensure that they comply with the law/
business code of conduct.üü
• Any other relevant answer related to ways in which
businesses can deal with sexual harassment.üü
Submax (2)
BS Grade 12 TG.indb 77 2022/03/14 10:18:43

DEALING WITH TYPES OF UNETHICAL AND
CHALLENGES TYPES
UNPROFESSIONAL BUSINESS PRACTICES
(1.1.1) (1.1.2)
(1.1.3)
Jolene does Tax evasion üü • Value Added Tax/VAT needs to be charged on VAT-able items. üü
not record all • Submit the correct tax returns to SARS on time. üü
income in the • All products should be correctly invoiced and recorded. üü
statements • Disclose all sources of income for tax payment purposes. üü
they send to • Keep abreast with the latest SARS regulations and tax laws. üü
SARS. ü • Businesses that have evaded tax should apply for amnesty and
declare their income. üü
• Effective systems to determine the appropriate amount of tax to
be paid should be in place. üü
• Businesses should keep accurate records of income statements/
financial transactions. üü
• The employees’ payroll needs to reflect accurate deductions
according to the progressive tax system. üü
• Make sure that all financial records are checked and audited. üü
• Any other relevant answer related to ways in which businesses
can deal with taxation/tax evasion. üü
Submax (2)
Jolene also Abuse of workplace • The business must conduct regular audits.üü
uses the funds üü • They must identify risk areas/vulnerable areas.üü
company’s • They must limit the number of employees having access to
credit card business funds/assets.üü
to pay for • The business must implement/introduce fraud
her personal prevention strategies.üü
expenses. ü • The business must educate employees about the impact
of fraud.üü
• Fraud prevention should be a collective responsibility of
businesses and workers.üü
• Clear policies should be in place so that employees are aware
of what is considered to be fraud.üü
• The business should set up systems in the organisation for
reporting fraud and corruption.üü
• Any other relevant answer related to ways in which
businesses can deal with abuse of workplace funds.
Submax (2)
Submax (3) Submax (6) Submax (6)
NOTE: 1 Mark the first strategy only.

2 Strategies must link to the identified unprofessional practices.
3 No marks must be awarded if strategies do not link.
4 Marks can be awarded for strategies even if identification in 1.1.2 was incorrect.
Max (15)
Breakdown of marks
Question 1 Marks
1.1.1 3
1.1.2 6
1.1.3 6
TOTAL 15
BS Grade 12 TG.indb 78 2022/03/14 10:18:43

Consolidation Learner’s Book page 96
QUESTION 1
1.1 Multiple choice
1.1.1 Cüü
1.1.2 Büü
1.1.3 Aüü
1.1.4 Büü
1.1.5 Düü (5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 2
2.1 Examples of ethical behaviour in the workplace
– The business is telling the truth during a public relations crisis to overcome the issue that they are facing.ü
– Businesses keep promises to their employees, partners and customers. ü
– The business shows loyalty when they make decisions that will also benefit their staff, partners, investors and customers. ü
– The business shows fairness when it exercises its power justly to all its stakeholders. ü
– The business operates within the law and other restrictions. ü
– Businesses ensure that the environment is not polluted in their production process. ü
– Businesses do not engage in illegal business practices like price fixing. ü
– Businesses do not make use of child labour. ü
– Any other relevant answer related to an example of ethical behaviour.
NOTE: Mark the first FOUR (4) answers only. (Any 4 x 1) (4)
2.2 Unprofessional business practices from given statements
2.2.1 Abuse of worktime.üü (2)
2.2.2 Unauthorised use of workplace funds. üü (2)
2.3 Challenge posed by sexual harassment as an unprofessional business practice.

– The affected party is normally reluctant to report the incident due to fear of victimisation. 
– Sexual harassment causes discomfort/humiliation and interferes with the job of the victim. 
– The business can lose female workers because they do not feel safe in the business. 
– Sometimes the affected person prefers to stay away from work and the business loses productivity. 
– Sexual harassment causes emotional trauma and the victim’s attitude will be negative in the workplace. 
– Any other relevant answer related to the challenge posed by sexual harassment. Max (6)
2.4 Ways in which business can deal with pricing of goods in rural areas
– A business may lobby with other businesses in the area to convince government to improve infrastructure in the
rural area. üü
– Businesses must charge fair/market related prices for goods and services. üü
– The business must be willing to avoid unethical business practices to attract customer loyalty. üü
– They must investigate cost-effective ways of transporting products/Hire a large truck to combine deliveries to shop-
owners in the same area. üü
– The business must work together with suppliers to share delivery costs to remote rural areas. üü
– Any other relevant answer related to the pricing of goods in rural areas. Max (6)
Breakdown of marks
Question 2 Marks
2.1 4
2.2 4
2.3 6
2.4 6
TOTAL 20
BS Grade 12 TG.indb 79 2022/03/14 10:18:43

QUESTION 3
3.1 Introduction
– Although professionalism is closely linked to ethics, it is a broader concept than ethics. ü
– Professionalism includes issues like appearance, communication, responsibility, knowledge, skills. ü
– Businesses always have the responsibility to do the right things and do things right. ü
– The business must set their values that will be use in all their operations. ü
– The aim of the King code is to set a code for ethical and effective leadership by the governing body of a company. ü
– Any other relevant introduction related to the distinction between ethical behaviour and professional behaviour/
challenges posed by tax evasion and unfair advertising as unethical business practices/application of accountability
and transparency as King Code principles/ways in which professional, responsible, ethical, and effective business
practice should be conducted.
Any (2 × 1) (2)
3.2 Differences between ethical and professional behaviour
ETHICAL BEHAVIOUR PROFESSIONAL BEHAVIOUR
Refers to the principlesü of right and wrong/ Refers to what is right/wrong/acceptable ü in a
acceptable in society. ü business.ü
Conforms to a set of valuesü that are morally Set of standardsü of expected behaviour.ü
acceptable. ü
Forms part of a code of conductü to guide Applying a code of conductü of a profession or
employees to act ethically.ü business.ü
Focuses on developing a moral compassü for Focuses on upholding the reputationü of a business/
decision making.ü profession.ü
Involves following the principles of right and wrongü Includes guidelinesü on employees’ appearance/
in business activities/practices/dealings. ü communication/attitude/responsibility, etc. ü
Any other relevant answer related to ethical Any other relevant answer related to professional
behaviour. behaviour.

2 The differences do not have to link but they need to be clear.
3 Award a maximum of SIX (6) marks if the differences are not clear/Mark either ethical behaviour
or professional behaviour.
Max (12)
3.3 Challenges posed by unethical business practices
Tax evasion
– Businesses may pay heavy fines ü for evading tax. ü
– Tax evasion may negatively impact ü on the business image. ü
– The accountant may be charged high fees ü for falsifying financial statements. ü
– Businesses may lose key stakeholders ü if the act of tax evasion is reported. ü
– Some businesses submit ü fraudulent/incorrect returns to SARS resulting in penalties. ü
– Businesses may not be familiar ü with the latest changes in tax legislation. ü
– Any other relevant answer related to the challenges posed by tax evasion as an unethical business practice.
Submax (6)
Unfair advertising
– The use of false or misleading statements in advertising leads to the misrepresentation of the concerned productü,
which may negatively affect consumers. ü
– Deceptive advertising can violate the trust of consumers ü and destroy business relationships. ü
– Businesses can make unwise advertising choicesü when they are under pressure to increase their profits. ü
– Unfair advertisements could be harmful ü to consumers. ü
– Some advertisements may be regarded as discriminatory ü because they exclude/target some sections of
the population. ü
– Any other relevant answer related to the challenges posed by unfair advertising as an unethical business practice.
Submax (6)
Max (12)
BS Grade 12 TG.indb 80 2022/03/14 10:18:43

3.4 Application of King Code principles
Accountability
– There must be regular communicationü between management and stakeholders. ü
– Company should appoint internal and external auditorsü to audit financial statements. ü
– The board should ensure that the company’s ethics are effectively implemented. ü
– Businesses should be accountable/ responsibleü for their decisions/actions. ü
– Businesses should present accurate annual reports to shareholders at the Annual General Meeting (AGM). ü
– Top management should ensure that other levels of management are clear ü about their roles and responsibilities
to improve accountability. ü
– Any other relevant answer related to the application of accountability as a King Code principle.
Submax (6)
Transparency
– Decisions/Actions must be clearü to all stakeholders. ü
– Staffing and other processesü should be open and transparent. ü
– Employees/Shareholders/Directors should be awareü of the employment policies of the business. ü
– Auditing and other reports must be accurate/ availableü to shareholders/employees. ü
– Regular audits should be doneü to determine the effectiveness of the business. ü
– Business deals should be conducted openlyü so that there is no hint/sign of dishonesty/corruption. ü
– Businesses should give details of shareholders’ voting rightsü to them before/at the Annual General
Meeting (AGM). ü
– The board of directors must report on both the negative and positive impactü of the business on the
community/environment. ü
– The board should ensure that the company’s ethicsü are effectively implemented. ü
– Any other answer related to the application of transparency as a King Code principal.
Submax (6)
Max (12)
3.5 Ways in which professional, responsible and effective business practises should be conducted
– Business decisions and actions must be clear/transparent to all stakeholders. üü
– Businesses should be accountable /responsible for their decisions and actions/ patent rights. üü
– The business should hire honest/trustworthy accountants/financial officers with good credentials to ensure
transparent recording and financial statements. üü
not finding loopholes to avoid paying taxes. üü
– The business should draw up a code of ethics/conduct. This document must states acceptable behaviour
in the business. üü
– There must be on-going development and training for all employees of the business. üü
– Performance management systems/Appraisals should be in place to motivate employees of the business. üü
– There must be adequate internal controls/monitoring/evaluation to ensure accountability of the business. üü
– The business’s salaries and wages must be fair and in line with the requirements of the BCEA. Businesses must also
remunerate employees for all work done and for working overtime. üü
– Businesses must take care of the environment and use green policies in the workplaceü such as recycling paper,
responsible disposal of waste material and safe energy. üü
– The business must not start a business venture at someone else’s expense or using the ideas of other businesses/
individuals and respect intellectual property of other businesses. üü
– Businesses should treat all their employees equally, regardless of their race/colour/age/gender/disability üü
– Provide good quality goods and services to customers and pay attention to the safety of customers as well as give
clear information to the customers to make informed decisions. üü
– Any other relevant answer related to ways in which professional, responsible, ethical and effective business practice
should be conducted.
Max (10)
BS Grade 12 TG.indb 81 2022/03/14 10:18:43

3.6 Conclusion
– A business code of ethics should improve relationships and eliminate unethical business practices.üü
– Employees who do not adhere to the code of conduct should face disciplinary actions. üü
– Businesses can make use of good corporate governance to address issues that change professionalism and ethics in
the workplace. üü
– The King Code principles can be applied to all entities in the private and public sectors. üü
– Any other relevant conclusion related to the distinction between ethical behaviour and professional behaviour/
challenges posed by tax evasion and unfair advertising as unethical business practices/application of accountability
and transparency as King Code principles/ways in which professional, responsible, ethical, and effective business
practice should be conducted.
Any (1 × 2) (2)
(40)
3.1 Introduction 2
3.2 Differences between ethical behaviour professional behaviour 12
3.3 Challenge of unethical practices 12
Max
3.4 Application of King Code principles 12 32
3.5 Ways to conduct professional, responsible, ethical and effective 10
behaviour
3.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 82 2022/03/14 10:18:43

TOPIC 4 Creative thinking and
problem-solving
Teaching tips:
• Refer learners to content covered in Grade 10: • Place more emphasis on the words silently and
– Creative thinking aloud when teaching the differences between the
– Problem-solving nominal-group technique and brainstorming.
– Decision making • Understanding the meaning of ‘nominal-group’ will
– Problem solving techniques assist in understanding why employees must first
• Refer learners to content covered in Grade 11: generate ideas silently, on their own, before sharing
them with others.
– Problem-solving techniques
• Identify key words that could assist learners to
– Application of problem solving techniques
elaborate on the advantages of creative thinking in
• Emphasise that this topic in Grade 12 builds on the
the workplace
foundational knowledge of the content covered in
• Teaching and learning should focus on how
Grade 10 & 11.
businesses should stimulate creative thinking in the
• Compile a baseline assessment to determine content
workplace before learners are taught the advantages
gaps.
of creative thinking.
• Revise & consolidate content identified in analysis of
• Use key words such as ‘suggestions box’, ‘training’,
the baseline assessment.
‘job swopping’, ‘experiments’ and ‘reward schemes’
• Unpack the glossary of concepts with learners
when teaching this topic.
• Learners could be requested to bring articles on
businesses that have stimulated creative thinking in
the workplace to be used in class discussions.
• There are similarities between the problem-solving • Consult the following past NSC Question Papers for
steps and the strategic management process in Section B and C type questions:
terms of formulating, implementing and monitoring – May/June 2021 P2 Question 4.7 – scenario on
the strategy. problem solving techniques
• However, the problem-solving steps focus on how – Nov 2020 P2 Question 4.7 – scenario on problem
businesses can solve problems, while the strategic solving techniques
management process focuses on developing suitable – June 2019 Question 4.3 – scenario on problem
strategies to respond to the challenges posed by solving techniques
business environments. – Nov 2018 Question 6.6 –identify problem solving
• Creative thinking benefits both the business and techniques
employees.
• This topic should not be confused with the benefits
of diversity in the workplace as the focus is on the
advantage of new and innovative ideas rather than
diversity.
Topic 4 Creative thinking and problem-solving 83
BS Grade 12 TG.indb 83 2022/03/14 10:18:43

QUESTION 1
1.1 Problem-solving steps from the scenario
PROBLEM-SOLVING STEPS MOTIVATIONS
1. Identify the problem The management of JRA was able to identify the
problem during their staff meeting 
2. Evaluate alternative solutions They conducted brainstorming sessions with their
employees to come up with as many possible
solutions to their problem. 
3. Choose the most appropriate solution Consensus was reached on the best resolution.
4. Develop an action plan  JRA formulated a plan on how the solution will be
implemented 

Max (12)
1.2 Other problem-solving steps
Define the problem
– Have an in-depth understanding of the nature of the problem. 
– Gather as much information as possible to establish the cause of the problem. 
– Define all the possible causes of the problem. 
– Any other relevant answers related to defining the problem as a problem-solving step.
Heading 2
Explanation 1
Submax 3
Evaluate alternative solutions
– Use critical evaluation and analytical skills to evaluate each solution. 
– Consider the advantages and disadvantages of each alternative solution. 
– Any other relevant answers related to evaluating alternative solutions as a problem-solving step.
Heading 2
Explanation 1
Submax 3
Implement the action plan
– Carry out the planned actions to solve the problem. 
– Communicate delegated tasks and/or deadlines to all employees. 
– Any other relevant answers related to implementing the action plan as a problem-solving step.
Heading 2
Explanation 1
Submax 3
BS Grade 12 TG.indb 84 2022/03/14 10:18:43

Evaluate the solution/action plan
– Assess whether the problem has been solved partially or entirely. 
– Monitor the solution and action plan continuously with the appropriate tests. 
– If problems emerge, re-formulate the problem for improved solutions in the future. 
– Any other relevant answer related to evaluating the solution/action plan as a problem-solving step.
Heading 2
Explanation 1
Submax 3

2 Do not award marks for answers quoted in QUESTION 1.1.
Max (9)
Breakdown of marks
Question 1 Marks
1.1 12
1.2 9
TOTAL 21
QUESTION 1
1.1 Problem-solving techniques from given statements
1.1.1 Brainstorming
1.1.2 Force field analysis
1.1.3 Nominal group technique
1.1.4 Delphi technique
(4 × 2) (8)
Breakdown of marks
Question 1 Marks
1.1 8
TOTAL 8
QUESTION 2
2.1 Introduction
– Problem-solving is the gathering of facts that are necessary to overcome a specific challenge.
– Decision-making is the process to consider various alternatives before deciding on the best one.
– Problem-solving techniques are methods that can be used to solve business related problems.
– Using the Force field Analysis, the business weighs up the driving forces (advantages) and restraining forces
(disadvantages) against each other. 
– The business can also use Force field analysis to consider how to strengthen the driving forces and weaken the
restraining forces. 
– Any other relevant introduction related to the differences between decision-making and problem-solving/problem-
solving steps/application of force field analysis and brainstorming as problem-solving techniques/impact of force
field analysis.
Any (2 × 1) (2)
2.2 Distinction between decision-making and problem-solving
DECISION-MAKING PROBLEM-SOLVING
Decision-making is often done by one person/senior Problems can be solved by a group/ team or an
management. This makes decision-making more individual team member which make it more
authoritative.  inclusive. This makes problem-solving more inclusive.

BS Grade 12 TG.indb 85 2022/03/14 10:18:43

The person/senior management will consider various The group/team will generate/identify various
alternatives before deciding on the best one.  solutions and then critically evaluate each one. 
This process is part of the problem-solving cycle This process of analysing a situation will help the
because decisions need to be taken in each step of group/team to identify strategies that will bring
the cycle.  about change. 
Any other relevant answer related to the explanation Any other relevant answer related to the explanation
of decision-making of problem-solving

2 The differences do not have to link but they must be clear.
3 Award a maximum of FOUR (4) marks it the distinction is not clear./Mark either decision-making
or problem-solving.
Max (8)
2.3 Problem-solving steps
Identify the problem
– Acknowledge that there is a problem  before it can be solved.
– Get information and suggestions from anyone who may be affected  in order to identify the exact problem. 
– Any other relevant answer related to identify the problem as a problem-solving step.
Heading 2
Explanation 2
Submax 4
Define the problem
– Have an in-depth understanding of the nature of the problem. 
– Gather as much information as possible to establish the cause of the problem. 
– Define all the possible causes of the problem. 
– Any other relevant answer related to define the problem as a problem-solving step.
Heading 2
Explanation 2
Submax 4
Identify alternative solutions
– Identify different possible solutions by using a problem-solving technique like brainstorming or nominal group
technique. 
– Decide what seems to be the best solution(s) to the problem. 
– Any other relevant answer related to identify alternative solutions as a problem-solving step.
Heading 2
Explanation 2
Submax 4
Evaluate alternative solutions
– Use critical evaluation and analytical skills to evaluate each solution. 
– Consider the advantages and disadvantages  of each alternative solution. 
– Any other relevant answer related to evaluate alternative solutions as a problem-solving step.
Heading 2
Explanation 2
Submax 4
Choose the best solution
– Set criteria for the best solution considering aspects such as time, cost and risk involved. 
– Get consensus or identify which solution will be used. 
– The best solution should match the size and the resources of the business. 
BS Grade 12 TG.indb 86 2022/03/14 10:18:43

– If there is no clear solution the business should go back to square one,that is, identify the problem. 
– Any other relevant answer related to choose the best solution as a problem-solving step.
Heading 2
Explanation 2
Submax 4
Formulate/Develop an action plan/strategy
– Arrange the necessary resources and delegate tasks. 
– Establish a time line for implementation and set deadlines
– Any other relevant answer related to formulate an action plan/strategy as a problem-solving step.
Heading 2
Explanation 2
Submax 4
Implement the action plan
– Carry out the planned actions to solve the problem. 
– Communicate delegated tasks and/or deadlines to all employees. 
– Any other relevant answer related to implement the action plan as a problem-solving step.
Heading 2
Explanation 2
Submax 4
Evaluate the solution/action plan
– Assess whether the problem has been solved partially or entirely 
– Continuously monitor the solution and action plan  using appropriate tests. 
– If problems emerge, re-formulate the problem for improved solutions in the future. 
– Any other relevant answer related to evaluate the action plan/solution as a problem-solving step.
Heading 2
Explanation 2
Submax 4
Max (16)
2.4 Application of problem-solving techniques
Application of Force field analysis
– Describe the current situation or problem and the desired situation and write it in the middle or on top for
everyone to see.
– List all driving/pros and restraining/cons forces that will support and resist change. 
– Allocate a score to each force using a numerical scale, where 1 is weak and 5 is strong. 
– Weigh up the positives and negatives then decide if the project is viable. 
– Choose the force with the highest score as the solution. 
– If the project is viable,  find ways to increase the forces for change. 
– Identify priorities and develop an action plan. 
– Any other relevant answer related to the application of force field analysis.
Submax (8)
Application of Brainstorming
– The business must define the business problem clearly, so that all participants understand it. 
– The group must set a time limit for each brainstorming session. 
– People in the group suggest ideas at random and all ideas get written on a flip chart. Ideas may also be shared
online during an E-brainstorming session.
– Use each suggestion, to inspire new thoughts or ideas from other group members. 
– The group leader must not allow anyone to judge or criticise any ideas.  The goal is to generate as many ideas
as possible. 
– Refine the ideas and combine certain ideas and discuss if necessary. 
BS Grade 12 TG.indb 87 2022/03/14 10:18:43

– After discussion the group rates ideas and chooses the best solutions according to its usefulness as well as the
difficulty and cost to implement it. 
– Group members then need to discuss a plan of action on how to implement the best ideas. 
– Any other relevant answer related to the application of brainstorming.
Submax (8)
2.5 Impact of Force field analysis
Positives/Advantages
– It provides a visual summary of all the various factors supporting and opposing a particular idea.
– Employees feel included and understood the way the business is going. 
– Employees develop and grow with the business because they are included in the process. 
– Informed decisions can be made  because driving forces/forces for and restraining forces/forces against are
critically evaluated. 
– This technique enables businesses to strengthen the driving forces and weaken the restraining forces. 
– Businesses can get an idea of how much time  additional resources they may need to employ. 
– Any other relevant answer related to the advantages of force field analysis.
AND/OR
Negatives/Disadvantages
– It is time consuming since the business must stabilise before more changes can be made. 
– Requires the participation of all business units. 
– The analysis developed is entirely dependent upon the skill level and knowledge of the group working on the analysis. 
– Any other relevant answer related to the disadvantages of Force field analysis.
Max (8)
2.6 Conclusion
– If businesses experience problems they must carefully look at the whole situation by applying the problem-solving
steps. 
– After the problem-solving steps, management must decide on the best solution for the business problem. 
– It is important to apply the correct problem-solving technique to solve the business’s problem, for example, for
implementing change, use the Force field analysis. 
– Any other relevant conclusion related to the differences between decision-making and problem-solving/problem-
solving steps/application of force field analysis and brainstorming as problem-solving techniques/impact of force
field analysis.
Any (1 × 2) (2)
(40)
2.1 Introduction 2
2.2 Distinction between decision-making and problem-solving 8
2.3 Problem-solving steps 16 Max
2.4 Application of Force field analysis 16 32
2.5 Impact of Force field analysis 6
2.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 88 2022/03/14 10:18:43

QUESTION 1
ACROSS DOWN
1 Forcefield  6 Flipboard 
2 Delphi  7 Equal 
3 One  8 Identify 
4 Time  9 Box 
5 Motivation  10 Incentives 
(10 × 2) (20)
Breakdown of marks
Question 1 Marks
20
TOTAL 20
QUESTION 1
1.1.1 decision-making
1.1.2 Delphi
1.1.3 Nominal group
1.1.4 creativity
(4 × 2) (8)
1.2.1 Identify the problem-solving technique from the scenario
Delphi technique
Motivation: DPL would like to first acquire the opinions of experts on the sustainability and viability of the idea.
(3)
1.2.2 Application of the Delphi Technique
– The business must invite a panel of experts  to research the challenge of the business. 
– Experts do not have to be in one place  and will be contacted individually. 
– A questionnaire consisting of questions to gather information from the experts  regarding the challenge/s
of the business must be designed. 
– The experts will then be requested to send individual responses  to the questionnaire. 
– The business then needs to summarise the responses from the experts  using a feedback report. 
– This feedback report is sent back to the experts and, if necessary , a second set of questions/questionnaire
based on the feedback report to the panel members will be developed. 
– Panel members will then be requested to provide further input/ideas  on how to solve the challenge/s of
the business. 
– If necessary, send a third questionnaire  based on previous feedback from the second round. 
– Finally the business will summarize  all the feedback from the experts in a report. 
– After reaching a consensus , the business should then choose the best solution/proposal based on
the report. 
– Any other relevant answer related to the application of the Delphi technique.
Max (8)
BS Grade 12 TG.indb 89 2022/03/14 10:18:43

1.3 Advantages of brainstorming in the workplace
– Better or unique solutions and/or ideas are developed through collective contributions and will give the business a
competitive advantage.
– Productivity increases if the business generates ideas, which utilises time and money more effectively. 
– Employees are motivated as they are allowed to contribute to problem solving. 
– Managers will be better leaders as they will be able to manage change creatively. 
– Creativity may led to new inventions which improves the general standard of living. 
– Any other relevant answer related to the advantages of brainstorming.
Max (8)
Breakdown of marks
Question 1 Marks
1.1 8
1.2.1 3
1.2.2 8
1.3 8
TOTAL 27
QUESTION 2
2.1 Introduction
– Creative thinking is the ability to look at the same scenario/challenge and came up with original, new innovative
ideas/solutions.
– Nominal Group Technique is a weighted ranking method that enables a small group to generate ideas individually. 
– Within the Nominal group technique everyone is given an equal voice. 
– Any other relevant introduction related to ways in which business can create an environment that promotes creative
thinking in the workplace/advantages of creative thinking in the workplace/application of nominal group technique/
impact of nominal group technique.
Any (2 × 1) (2)
2.2 Ways in which a business can create an environment that promotes creativity
– Management must always be willing to listen and respond enthusiastically to new ideas of staff members. 
– The management must encourage all staff members to develop new or unique ideas. 
– Management must make time for creating new ideas. 
– Make it easy for suggesting new ideas with suggestions boxes in the business. 
– Train staff members on innovative techniques 
– Organise job swopping with other businesses to learn from other more creative ways to handle situations. 
– Introduce incentives for staff members who came up with useful creative ideas. 
– Make sure that the working environment is free from distraction like high noise levels. 
– Any other relevant answer related to the way businesses can create an environment that promotes creativity.
Max (12)
2.3 Advantages of creative thinking in the workplace
– Better, unique or unconventional ideas and solutions  are generated. 
– May give the business a competitive advantage  if unusual, unique solutions, ideas, strategies are implemented. 
– Complex business problems  may be solved. 
– Productivity increases  as management and employees may quickly generate multiple ideas that use time and
money more effectively. 
– Managers and employees  have more confidence as they can live up to their full potential. 
– Managers will be better leaders  as they will be able to handle/manage change(s) positively and creatively. 
– Managers and employees can develop a completely new outlook , which may be applied to any task(s) they may do. 
– Leads to more positive attitudes  as managers and employees feel that they have contributed towards problem-
solving. 
BS Grade 12 TG.indb 90 2022/03/14 10:18:44

– Improves motivation  amongst staff members. 
– Managers and employees have a feeling of great accomplishment and they will not resist or obstruct the process
once they solved a problem and contributed towards the success of the business. 
– Management and employees may keep up with  fast-changing technology. 
– Stimulates initiative from employees and managers  as they are continuously pushed out of their comfort zone. 
– Creativity may lead to new inventions  which improve the general standard of living. 
– Any other relevant answer related to the impact of creative thinking on the business.
Max (12)
2.4 Application of nominal group technique
– Encourage the group to define the problem so that all in the small group can work on the same problem. 
– If the group is too big it must be divided into smaller groups. 
– Request each employee to silently brainstorm or generate as many ideas as possible on his/her own and write
it down. 
– Each employee in the small group has the opportunity to give one of his/her ideas with a short explanation. 
– Write all the ideas down on a large paper or electronically on computer for all to see. 
– Encourage employees to ask clarity seeking questions. 
– No criticism of ideas will be allowed because it will prevent others from taking part in the process. 
– The next step is to eliminate ideas that are duplicate ideas that are similar. 
– Each employee now has the opportunity to read through the suggestions and anonymously rate them from
highest to lowest
– Collect the ratings and calculate the total points for each suggestion and choose favourite solution. 
– If they were divided into small groups every group must present one solution to the large group. 
– Any other relevant answer related to the application of Nominal group technique.
Max (12)
2.5 Impact of nominal group technique
– It provides time to think about the question in silence before responding and can participate without interference of
other members. 
– Voting on the ideas is anonymous and the outcome may be more honest and reliable. 
– Everyone in the group is given an opportunity to contribute to the discussion, while avoiding the likelihood of one
person dominating the group process. 
– This process allow the group to generate and clarifies a large amount of ideas quickly, and democratically prioritises
them. 
– This is an ideal technique for preventing conformity to group pressure. 
– This technique encourages participants to confront issues through constructive participation towards a solution of a
complex business problem.
– Any other relevant answer related to the advantages of nominal group technique.
AND/OR
– It minimises discussion, and thus does not allow the full development of ideas. 
– Ideas/Inputs made by members may not converge and cannot lead to the same solution(s). 
– Suggestions may not be as creative as when a group throws ideas around. 
– It is time consuming, as each member must make a presentation. 
– It is hard to implement it effectively with large groups unless very carefully planned beforehand. 
– Requires extended advance preparation, which means that it cannot be a spontaneous technique. 
– Good ideas can be voted out because its potential cannot be developed further. 
– Small groups limit participation and are pre-selected. 
– Any other relevant answer related to the disadvantages of nominal group technique
Max (10)
BS Grade 12 TG.indb 91 2022/03/14 10:18:44

2.6 Conclusion
– Businesses will improve significantly if they create an environment that promotes creative thinking. 
– Businesses must consider the various problem-solving techniques and choose the most appropriate technique for a
specific challenge. 
– Nominal group technique will involve all employees because the can work individually and they all have an equal
voice. 
– Applying creative thinking techniques may save businesses a lot of time and money.
– Any other relevant conclusion related to ways in which business can create an environment that promotes creative
thinking in the workplace/advantages of creative thinking in the workplace/application of nominal group technique/
impact of nominal group technique.
Any (1 × 2) (2)
(40)
2.1 Introduction 2
2.2 Ways to promote an creative environment 12
2.3 Advantages of creative thinking in the workplace 12 Max
2.4 Application of nominal group technique 12 32
2.5 Impact of nominal group technique 10
2.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 92 2022/03/14 10:18:44

TOPIC 5 Macro environment:
Business strategies
Teaching tips:
• Refer learners to the Grade 10 content covered: • Practical examples are also effective when explaining
– Macro environment the steps in strategy evaluation.
– Formulating and implementing a strategy as part • Use practical examples when explaining the meaning
of problem solving of business strategies.
– SWOT analysis • Explain the rationale for the implementation of these
– PESTLE factors that pose challenges to businesses strategies to enhance their understanding.
• Refer learners to the Grade 11 content covered: • Teachers are encouraged to use the tips in the learner’s
– Challenges posed by the macro environment book to emphasise how to distinguish between market
– Strategies to deal with these challenges development and product development.
• Emphasise that this topic in Grade 12 builds on the • Teachers must emphasise that ALL diversification
foundational knowledge of the content covered in strategies focus on adding new products. However,
Grade 10 & 11. the manner in which the business adds these new
products differs.
• Compile a baseline assessment to determine
content gaps. • Teachers must be thorough in explaining the
meaning of each business strategy and the
• Revise and consolidate content identified in analysis
difference between liquidation and liquidity when
of the baseline assessment.
teaching defensive strategies.
• Unpack the glossary of concepts with learners.
• Teachers must also take time to explain the reasons
• Emphasise that the strategic management processes
why liquidation is classified under defensive strategies.
serves as a platform for the entire topic.
• Businesses will first implement divestiture and
retrenchment strategies to defend themselves and
liquidation will be applied as a last resort.
• Devise strategies to illustrate how PESTLE factors
can pose challenges to businesses and initiate class
discussions for suggestions to deal with challenges
• It must be pointed out that quoting examples of PESTLE • Consult the following past NSC Question Papers for
factors is covered in Grade 10 and will not meet the Section B and C type questions:
level of complexity expected in the Grade 12 context. – May/June 2021 P1 Question 2.3 – PESTLE elements.
• Porter’s Five Forces model is used as a research – May/June 2021 P2 Question 5 – essay on
instrument rather than as strategies to increase sales business strategies
and market share. – Nov 2019 Question 7 – essay on business
• It must be clear to learners that this model assists strategies
businesses with answering questions such as how – Nov 2018 Question 6.1 – identify PESTLE elements
and what makes buyers, competitors and suppliers – May/June 2018 Question 6.1 – identify type of
have power over the business business strategies
• New entrants refer to other businesses that sell the – May/June 2018 Question 7 – essay on business
same products in the existing market, for the first strategies
time, and that the power will depend on how easy it – Feb/March 2018 Question 2.5 – scenario on
is for them to enter the market. industrial analysis tools
• New competitors can easily enter the market if it • Create informal 10 mark quizzes/tests on the key
takes little time and money, whereas barriers refer terms of the previous day’s content – in that way
to obstacles like legislation, that makes it difficult to teachers expose learners to continuous consolidation.
comply with, in order to enter new markets.
• This distinction must be emphasised. examples of essays to ensure optimum exposure.
Topic 5 Macro environment: Business strategies 93
BS Grade 12 TG.indb 93 2022/03/14 10:18:44

QUESTION 1
1.1 Strategic management process
1.1.1 Strategic management process from the scenario
– Jonas Doughnuts applied Porter’s Five Forces Model to analyse their position in the market. 
– JD formulated alternative strategies in response to their business challenges. 
2 Mark the first TWO (2) only.
(2 × 1) (2)
1.1.2 Other ways in which the business can apply the strategic management process
Option 1
– Have a clear vision, mission statement and measurable/realistic/achievable objectives in place. 
– Identify strengths/weaknesses/opportunities/threats by conducting environmental scanning/
situational analysis. 
– Use available tools/methods for environmental scanning, which may include a SWOT Analysis/ PESTLE
Analysis/industrial analysis tools. 
– Develop/create (an) action plan(s) , including the tasks to be completed/deadlines to be met/ resources to
be procured, etc. 
– Organise the business resources and motivate staff. 
– Implement selected strategies by communicating it effectively/efficiently/correctly to all stakeholders. 
– Continuously evaluate/monitor/assess/measure strategies in order to take corrective action. 
– Any other relevant answer related to other ways in which the business can apply the strategic management
process.
OR
Option 2
– Review/Analyse/Re-examine  their vision/mission statement. 
– Conduct (an) environmental analysis/environmental scanning using models such as SWOT Analysis/
PESTLE Analysis.
– Formulate a strategy  such as a(n) integration/intensive/diversification/ defensive strategy. 
– Implement a strategy, using a template such as an action plan. 
– Control/Evaluate/Monitor the implemented strategy to identify gaps/deviations/differences in
implementation.
– Take corrective action to ensure goals/objectives/aims are met. 
– Any other relevant answer related to other ways in which the business can apply the strategic management
process.
NOTE: 1 Do not award marks for answers quoted in QUESTION 1.1.1.
2 Do not award marks for Porter’s Five Forces Model as one of the industrial analysis tools.
Max (8)
Breakdown of marks
Question 1 Marks
1.1.1 2
1.1.2 8
TOTAL 10
BS Grade 12 TG.indb 94 2022/03/14 10:18:44

QUESTION 1
1.1 SWOT Analysis
1.1.1 SWOT analysis
STRENGTHS WEAKNESSES
1. The marketing department of Unathi Nono 1. Employees however, have a poor work ethic.
Enterprises is knowledgeable on current 
market trends. 
2. The business is strategically situated.  2. Organisational resources are used
inadequately. 
OPPORTUNITIES THREATS
1. There is a new upmarket residential area 1. Inefficient suppliers fail to deliver inputs
situated close to UNE.  timeously. 
2. Competitors are unable to adapt to 2. During load shedding, UNE suspends
consumer demand.  operations because of high crime rates.
Max (8)
Breakdown of marks
Question 1 Marks
1.1.1 8
TOTAL 8
QUESTION 1
1.1 Porter’s Five Forces model
1.1.1 Force/element of Porter’s Five Forces model from the scenario
Threat/Barriers of new entrants to the market 
Motivation:
Protech Droners is unable to provide droning services due to high start-up costs and complicated
licencing procedures. 
NOTE: 1 Award marks for the correct force/element of Porter’s Five Forces model if the quote
is incomplete.
2 Do not award marks for the motivation, if the force/element of Porter’s Five Forces model
was incorrectly identified.
Max (3)
1.1.2 THREE other forces/elements of Porter’s Five Forces model
Bargaining power of suppliers/Power of suppliers 
– Suppliers that deliver high quality products may have power over the business. 
– The more powerful the suppliers, the less control the business has over them. 
– Assess/Evaluate the power of the suppliers in influencing prices. 
– Suppliers have a high degree of power when they sell a unique/scarce good/service. 
– Identify the kind of power suppliers’ have regarding the quality of products/services/reliability/ efficiency/
ability to make prompt deliveries, etc. 
– Any other relevant answer related to bargaining power of suppliers/power of suppliers as a force/element
of Porter’s Five Forces model.
Force/element 2
Explanation 1
Submax 3
BS Grade 12 TG.indb 95 2022/03/14 10:18:44

Bargaining power of buyers/Power of buyers 
– A few powerful buyers are often able to dictate their terms/prices to the business. 
– Assess how easy it is for buyers/customers to drive prices down/decrease prices. 
– Determine the number of buyers/the importance of each buyer to the business and the cost of switching to
other products. 
– Buyers buying in bulk can bargain/negotiate for prices in their favour. 
– Conduct market research to gather more information about its buyers/customers. 
– Any other relevant answer related to bargaining power of buyers/power of buyers as a force/element of Porter’s
Five Forces model.
Force/element 2
Explanation 1
Submax 3
Competitive rivalry/Power of competitors 
– Competitors selling the same/similar products/services may have a greater impact on the market of the business. 
– If competitors have a unique/scarce product/service, then they will have greater power. 
– A business with many competitors in the same market has very little power in their market/industry. 
– Compile/Draw up a competitor’s profile so that they can determine their own strength as well as that
of competitors. 
– Some businesses have necessary resources/capital to start price wars and continue selling at a loss until some/all
competitors leave the market. 
– Any other relevant answer related to competitive rivalry/power of competitors as a force/element of Porter’s
Five Forces model.
Force/element 2
Explanation 1
Submax 3
Threat of substitution/substitutes 
– Establish/Determine whether the sellers of substitute products have improved/enhanced their product/sell lower
quality goods at lower prices. 
– If the business’s product can be easily substituted, it weakens/reduces the power of the business in the market. 
– If the business sells unique/scarce products it will not be threatened/influenced by substitute products. 
– Assess if customers are using substitute products/services and determine reasons for using substitutes. 
– Change/improve the design/quality/efficiency of their products/services to remain competitive. 
– Any other relevant answer related to threat of substitution/substitutes as a force/element of Porter’s Five
Forces model.
Force/element 2
Explanation 1
Submax 3
NOTE: Mark the first THREE (3) forces/elements of Porter’s Five Forces model only.
Max (9)
Breakdown of marks
Question 1 Marks
1.1.1 3
1.1.2 9
TOTAL 12
BS Grade 12 TG.indb 96 2022/03/14 10:18:44

QUESTION 1
1.1 Challenges posed by PESTLE factors
CHALLENGES PESTLE FACTORS RECOMMENDATIONS

(1.1.1) (1.1.2) (1.1.3)
1. Imports for main raw materials Political  Trade only with countries
have been paused because of that have favourable trade
trade agreements.  agreements with the
government. 
2. The high inflation rate has meant Economic  Consider decreasing
that demand for products have profit margins rather than
declined.  increasing product prices.

3. AIS is not conversant with the local Social  Learn local/indigenous
language of consumers.  languages/Hire employees
who are well conversant
with the local/indigenous
language of customers. 
4. Some of their employees lack the Technological  Train existing/appoint new
skills to use new technology. employees to maintain/use
new equipment/technology.

5. Enterprise and Supplier Legal  Improve compliance with
Development (ESD) as one of legislation such as BBBEE
the pillars of BBBEE limits the that impact the operations of
operations of AIS. the business. 
6. Measures to dispose of business Environmental  Implement cost effective
waste is expensive.  measures to dispose of
medical waste. 
NOTE: 1 Mark the first challenge for each PESTLE factor only.
2 If the PESTLE factor is not linked to the challenge, mark the challenge only.
3 Award full marks for the PESTLE factor even if the challenge is not quoted in full.
4 The recommendation must be linked to the challenge.
5 Do not award marks for the recommendation if the PESTLE factor is not mentioned.
6 Order may be different.
Max (24)
Breakdown of marks
Question 1 Marks
1.1.1 6
1.1.2 6
1.1.3 12
TOTAL 24
BS Grade 12 TG.indb 97 2022/03/14 10:18:44

QUESTION 1
1.1 Integration strategies
1.1.1 Integration strategy from the scenario
Horizontal integration 
Motivation:
NGS decided to take over Pristine Gardening to reduce the threat of competition. 
NOTE: 1 Award marks for the correct integration strategy if the quote is incomplete.
2 Do not award marks for the motivation, if the integration strategy was incorrectly identified.
Max (3)
1.1.2 Other integration strategies that could be applied by the business
Forward vertical integration 
– The business combines/merges with/takes over its distributors down the supply chain/production chain. 
– It involves the expansion of business activities to gain control over the distribution of products/services. 
– The business takes over the distribution system and sells products/services directly to consumers/
customers. 
– The business merges with businesses that were once their customers, while still maintaining control of the
initial/primary business activities. 
– Any other relevant answer related to forward vertical integration as an integration strategy.
Integration
2
strategy
Explanation 1
Submax 3
Backward vertical integration 
– The business combines with/merges/takes over its suppliers up the supply chain/production chain. 
– This is done to decrease the business’s dependency on suppliers. 
– The business expands its role to fulfil activities/tasks that were formerly/previously completed
by suppliers. 
– It involves buying over/merging with another business that supplies products/services to the business. 
– Any other relevant answer related to backward vertical integration as an integration strategy.
Integration
2
strategy
Explanation 1
Submax 3
Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 3
1.1.2 6
TOTAL 9
BS Grade 12 TG.indb 98 2022/03/14 10:18:44

QUESTION 1
1.1 Intensive strategies
1.1.1 Intensive strategies from the scenario
INTENSIVE STRATEGIES MOTIVATIONS
1. Market penetration  Durban Fried Chicken has lowered the prices of
their products to increase the market share. 
2. Market development  The success of the business has led to DFC
opening a new branch in Mpumalanga.

2 Award marks for the correct intensive strategies even if the quote is incomplete.
3 Do not award marks for the motivation if the intensive strategies were
Max (6)
1.1.2 One other intensive strategy
Product development 
– The business uses this growth strategy to introduce new products into existing/current markets. 
– New ideas/products are generated/ produced by the business for existing/current markets. 
– The business conducts test marketing/market research to establish whether new products will be accepted
by existing customers. 
– New products may be different/of a higher quality than those of competitors. 
– Any other relevant answer related to product development as an intensive strategy.
Intensive
2
strategy
Explanation 1
Submax 3
1.1.3 Advantages of intensive strategies
– Increased/enhanced/improved market share as intensive strategies reduces the business’s vulnerability to
actions of competitors. 
– Increase in sales/revenue/income/profitability due to variety of aggressive advertising campaigns/ because
more products/services are being sold. 
– Improve service delivery which may improve business image/brand/brand awareness. 
– Increase the control over the prices charged for products/services. 
– Increase customer loyalty through effective promotion campaigns. 
– Decrease prices that may influence customers/consumers to buy more products/services. 
– Increase in regular sales from existing customers/consumers that may increase. 
– Remove existing competitors and dominate market prices. 
– Improve the focus on markets/well researched quality products that satisfy the needs of
customers/consumers. 
– Any other relevant answer related to the advantages of intensive strategies.
Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 6
1.1.2 3
1.1.3 6
TOTAL 15
BS Grade 12 TG.indb 99 2022/03/14 10:18:44

QUESTION 1
1.1 Diversification strategies
1.1.1 Diversification strategy from the scenario
Concentric diversification 
Motivation:
BD decided to add a new clothing line for toddlers to attract new customers. 
NOTE: 1 Award marks for the correct diversification strategy if the quote is incomplete.
2 Do not award marks for the motivation, if the diversification strategy was
Max (3)
1.1.2 Other types of diversification strategies
Horizontal diversification 
– The business adds new products/services that are unrelated to existing/current products, but which may
appeal to existing/current customers/consumers. 
– Occurs when a business acquires/merges with a business that is at the same production stage, but it may
offer a different product. 
– The business extends the production of products/services above/beyond the market/industry in which it
currently operates. 
– Occurs when the business increases its development potential/extends its brand and significantly reduces
risk as the new products are aimed at existing customers/consumers. 
– Any other relevant answer related to horizontal diversification as a diversification strategy.
Diversification
2
strategy
Explanation 1
Submax 3
Conglomerate diversification 
– The business adds new products/services that are unrelated to existing products which may appeal to new
groups of customers. 
– Occurs when the business operates multiple product lines/business entities for entirely different industries/
consumers/customers. 
– The business grows into new products/services and markets. 
– Occurs when the business is able to increase overall product/service flexibility/proficiency by extending
activities to unexplored/untapped/unfamiliar markets. 
– Any other relevant answer related to conglomerate diversification as a diversification strategy.
Diversification
2
strategy
Explanation 1
Submax 3
Max (6)
1.1.3 Advantages of diversification strategies
– Increase in sales/revenue/income and business growth. 
– Sustained profitability from different product lines during times of fluctuating economic activity. 
– Increase in the number of products being sold to existing/new customers/consumers. 
– Establish additional new markets in unrelated markets/industries. 
– Gain more technological capabilities through product modification. 
– Improve brand/image/brand awareness of the business. 
– Reduce the risk of relying only on one product for sales/revenue/income. 
– Retain its competitive advantage by meeting the needs of current/new customers/expanding into new
unexplored markets. 
BS Grade 12 TG.indb 100 2022/03/14 10:18:44

– Remain relevant/functional/operational in the context of everchanging business environments. 
– Accept any other relevant answer related to the advantages of diversification strategies.
Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 3
1.1.2 6
1.1.3 6
TOTAL 15
QUESTION 1
1.1 Defensive strategies
1.1.1 Defensive strategies from the scenario
DEFENSIVE STRATEGIES MOTIVATIONS
1. Retrenchment  The employment contracts of certain employees
were terminated due to a decrease in the number
of product lines. 
2. Divestiture/Divestment  Some of NP’s assets that were no longer
functional were sold.
3. Liquidation  NP finally decided to sell their assets to repay
creditors. 

2 Award marks for the correct defensive strategies even if the quote is incomplete.
3 Do not award marks for the motivation, if the defensive strategies were
Max (9)
Breakdown of marks
Question 1 Marks
1.1.1 9
TOTAL 9
QUESTION 1
1.1 Strategy evaluation
1.1.1 Steps in strategy evaluation from the scenario
– KPD assessed the underlying basis of the business strategy. 
– They also took corrective action so that deviations from the standards may be corrected. 
– Specific dates were set by KPD for control and follow up. 
2 Mark the first THREE (3) only.
(3 × 1) (3)
1.1.2 Other steps in strategy evaluation
– Look forward and backwards into the implementation process. 
– Compare the expected performance with the actual performance. 
BS Grade 12 TG.indb 101 2022/03/14 10:18:44

– Measure the business performance in order to determine the reasons for deviations and analyse
these reasons. 
– Draw up a table/list of the advantages and disadvantages of a strategy. 
– Decide on the desired outcome. 
– Consider the impact of the strategic implementation in the internal and external environments of
the business. 
– Any other relevant answer related to steps in strategy evaluation that could be applied by KPD.
NOTE: 1 Do not allocate marks for answers quoted in QUESTION 1.1.1.
2 Accept steps provided in any order.
Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 3
1.1.2 6
TOTAL 9
QUESTION 1
DOWN ACROSS
1 Forward vertical integration  2 Market penetration 
3 Concentric diversification  4 Retrenchment 
5 Industrial analysis tools  6 Power of suppliers 
7 Conglomerate diversification  8 Market development 
9 Industry downturn  10 PESTLE Analysis 
(10 × 2) (20)
Breakdown of marks
Question 1 Marks
20
TOTAL 20
QUESTION 2
DOWN ACROSS
1 Product development  2 Strategy 
3 Horizontal diversification  4 Porter’s Five forces model 
5 Backward vertical integration  6 Competitive rivalry 
7 Horizontal integration  8 Liquidation 
9 Threat of substitution  10 SWOT Analysis 
(10 × 2) (20)
Breakdown of marks
Question 2 Marks
20
TOTAL 20
BS Grade 12 TG.indb 102 2022/03/14 10:18:44

QUESTION 3
3.1 Multiple choice
3.1.1 B 
3.1.2 D 
3.1.3 D 
3.1.4 A 
3.1.5 A 
(5 × 2) (10)
3.2.1 conglomerate 
3.2.2 weakness 
3.2.3 Porter’s Five forces model 
3.2.4 environmental 
3.2.5 retrenchment 
(5 × 2) (10)
3.3 Matching Columns
3.3.1 C 
3.3.2 H 
3.3.3 E 
3.3.4 A 
3.3.5 F 
(5 × 2) (10)
Breakdown of marks
Question 3 Marks
3.1 10
3.2 10
3.3 10
TOTAL 30
QUESTION 4
4.1 PESTLE factors that pose challenges from given statements
4.1.1 Social 
4.1.2 Economic 
4.1.3 Technological 
4.1.4 Environmental 
4.1.5 Legal 
(5 × 2) (10)
4.2 Defensive strategies
– Retrenchment 
– Divestiture/Divestment 
– Liquidation 
(3 × 1) (3)
BS Grade 12 TG.indb 103 2022/03/14 10:18:44

4.3 Distinction between horizontal integration and horizontal diversification
HORIZONTAL INTEGRATION HORIZONTAL DIVERSIFICATION
The business takes control of/incorporates/merges The business adds new products/services that are
with other businesses in the same/related industry unrelated to existing/current products , but which
which produce/sell the same/similar products.  may appeal to existing/current customers/ consumers.

The aim is to reduce the threat of competition/ Occurs when a business acquires/merges with a
substitute products/services.  business that is at the same production stage, but it
may offer a different product. 
The business is able to strengthen/expand their The business extends the production of products/
market share/position and enhance production/ services above/beyond the market/ industry in
distribution.  which it currently operates. 
It is the acquisition/takeover of a related business Occurs when the business increases its development
that operates at the same level of the supply chain in potential/extends its brand and significantly reduces
the industry.  risk as the new products are aimed at existing
customers/consumers. 
Any other relevant answer related to horizontal Any other relevant answer related to horizontal
integration. diversification

3 Award a maximum of TWO (2) marks if the distinction is not clear/Mark either horizontal
integration or horizontal diversification only.
Max (4)
4.4 Porter’s Five Forces Model
4.4.1 Elements of Porter’s Five Forces Model from the scenario
PORTER’S FIVE FORCES MOTIVATIONS
1 Threat/Barriers of new entrants to the market Bonga Bakery was easy to establish, as only a
 trading licence was required. 
2 Bargaining power of suppliers/Power of The main consumers have forced BB to reduce
suppliers  the prices of confectionary cakes. 
3 Competitive rivalry/Power of competitors  Imperial Bakers (IB) that is situated near BB
used a sales strategy to increase their market
share. 
4 Bargaining power of suppliers/Power of A drought has caused prices of main inputs to
suppliers  rapidly increase. 
5 Threat of substitution/substitution  Customers have opted to purchase cheaper
products from IB.

2 Award marks for the correct force/element of Porter’s Five forces model even if the quote
is incomplete.
3 Do not award marks for the motivation if the force/element of Porter’s Five forces model were
Max (15)
Option 1
– Have a clear vision, mission statement and measurable/realistic/achievable objectives in place. 
– Identify strengths/weaknesses/opportunities/threats by conducting environmental scanning/situational analysis. 
– Use available tools/methods for environmental scanning, which may include a SWOT analysis/Porter’s Five Forces
model/PESTLE analysis/industrial analysis tools. 
– Formulate alternative strategies to respond to business challenges. 
BS Grade 12 TG.indb 104 2022/03/14 10:18:44

– Develop/create (an) action plan(s) , including the tasks to be completed/deadlines to be met/resources to be
procured, etc. 
– Organise the business resources and motivate staff. 
– Implement selected strategies by communicating it effectively/efficiently/correctly to all stakeholders. 
– Continuously evaluate/monitor/assess/measure strategies in order to take corrective action. 
– Any other relevant answer related to the strategic management process.
OR
Option 2
– Review/Analyse/Re-examine  their vision/mission statement. 
– Conduct (an) environmental analysis/environmental scanning using models such as SWOT analysis/Porter’s Five
Forces model/PESTLE analysis. 
– Formulate a strategy such as a(n) integration/intensive/diversification/defensive strategy. 
– Implement a strategy, using a template such as an action plan. 
– Control/Evaluate/Monitor the implemented strategy to identify gaps/deviations/differences in implementation. 
– Take corrective action to ensure goals/objectives/aims are met. 
– Any other relevant answer related to the strategic management process.
NOTE: Award marks for facts presented in any order.
Max (8)
Breakdown of marks
Question 4 Marks
4.1 10
4.2 3
4.3 4
4.4 15
4.5 8
TOTAL 40
QUESTION 5
5.1 Industrial analysis tools
– SWOT analysis
– Porter’s Five Forces Model
– PESTLE Analysis
(3 × 1) (3)
5.2.1 SWOT analysis
STRENGTH WEAKNESS
LBD is currently using sound financial management High employee voluntary turnover rates are prevalent
practices.  in the business. 
OPPORTUNITY THREAT
The local government is supporting LBD with grants. Covid 19 has caused a sustained decline in the sales
 of Liam Botman Dealers. 

(4 × 1) (4)
5.3.1 Intensive strategy from the scenario
Market development 
Motivation:
Mbombela Restaurant has applied an intensive strategy by opening a new branch located in Polokwane. 
NOTE: 1 Award marks for the correct intensive strategy if the quote is incomplete.
2 Do not award marks for the motivation, if the intensive strategy was incorrectly identified.
Max (3)
BS Grade 12 TG.indb 105 2022/03/14 10:18:44

5.3.2 Other intensive strategies
Market penetration 
– The business focus on selling existing/current products into the existing/current market to increase their
market share.
– Market research on existing/current consumers/customers is used to decide how to improve the marketing mix of
the business. 
– Aggressive marketing campaigns such as lowering/reducing prices to attract potential/existing clients are used by
the business. 
– The business does not modify existing/current products or launch new products during market penetration. 
– Any other relevant answer related to market penetration as an intensive strategy.
Intensive
2
strategy
Explanation 1
Submax 3
Product development 
– The business uses this growth strategy to introduce new products into existing/current markets. 
– New ideas/products are generated/ produced by the business for existing/current markets. 
– The business conducts test marketing/market research to establish whether new products will be accepted by
existing customers. 
– New products may be different/of a higher quality than those of competitors. 
– Any other relevant answer related to product development as an intensive strategy.
Intensive
2
strategy
Explanation 1
Submax 3
Max (6)
5.3.3 Advantages of intensive strategies
– Increased/enhanced/improved market share as intensive strategies reduces the business’s vulnerability to actions
of competitors. 
– Increase in sales/revenue/income/profitability due to variety of aggressive advertising campaigns/ because more
products/services are being sold. 
– Improve service delivery which may improve business image/brand/brand awareness. 
– Increase the control over the prices charged for products/services. 
– Increase customer loyalty through effective promotion campaigns. 
– Decrease prices that may influence customers/consumers to buy more products/services. 
– Increase in regular sales from existing customers/consumers that may increase. 
– Remove existing competitors and dominate market prices. 
– Improve the focus on markets/well researched quality products that satisfy the needs of customers/consumers. 
– Any other relevant answer related to the advantages of intensive strategies.
Max (6)
5.3.4 Steps in strategy evaluation
– Examine/Assess the underlying basis of a business strategy. 
– Look forward and backwards into the implementation process. 
– Compare the expected performance with the actual performance. 
– Measure the business performance in order to determine the reasons for deviations and analyse these reasons. 
– Take corrective action so that deviations may be corrected. 
– Set specific dates for control and follow up. 
– Draw up a table/list of the advantages and disadvantages of a strategy. 
– Decide on the desired outcome. 
BS Grade 12 TG.indb 106 2022/03/14 10:18:44

– Consider the impact of the strategic implementation in the internal and external environments of the business. 
– Any other relevant answer related to steps in strategy evaluation.
NOTE: Award marks for steps presented in any order.
Max (8)
Breakdown of marks
Question 5 Marks
5.1 3
5.2 4
5.3.1 3
5.3.2 6
5.3.3 6
5.3.4 8
TOTAL 30
QUESTION 6
6.1 Types of business strategies from given statements
6.1.1 Market penetration 
6.1.2 Backward vertical integration 
6.1.3 Concentric diversification 
6.1.4 Divestiture/Divestment 
6.1.5 Retrenchment 
6.1.6 Horizontal integration 
(6 × 2) (12)
6.2 Challenges posed by PESTLE factors
CHALLENGES PESTLE FACTOR
6.2.1 6.2.2
1 Soso Consultancy is unable to keep abreast with Technological 
the latest innovations in new machinery. 
2 Some government policies affect the business Political 
operations of SC. 
3 High costs in obtaining a licence is preventing the Legal 
establishment of a second branch. 
4 Fluctuations in foreign currency are restricting Economic 
imports. 
Max (4) Max (8)
NOTE: 1 Mark the first challenge for each PESTLE factor only.
2 If the PESTLE factor is not linked to the challenge, mark the challenge only.
3 Award full marks for the PESTLE factor even if the challenge is not quoted in full.
4 Order may be different.
6.2.3 Ways in which the business can deal with challenges that are posed by ONE of the PESTLE factors
Technological
– Conduct continuous research on the latest available technology/equipment in the market. 
– Train existing/appoint new employees to maintain/use new equipment/technology. 
– Compare prices/Select suitable suppliers for new equipment/machinery/technology at reasonable prices. 
– Businesses must be geared for online trading/e-commerce. 
– Any other relevant answer related to recommendation for challenges of technological PESTLE factors.
OR
BS Grade 12 TG.indb 107 2022/03/14 10:18:44

Political
– Research/apply recent government policies. 
– Network/lobby with the NGOs/CBOs and all consumer rights organisations. 
– Trade only with countries that have favourable trade agreements with the government. 
– Investigate/adhere to/comply with the National Competition Policy. 
– Any other relevant answer related to recommendation for challenges of political PESTLE factors.
OR
Legal
– Comply with all relevant legislation that may impact on businesses. 
– Comply with the legal requirements for operating businesses, for example, licence/trade mark
registration/ patents. 
– Budget for high legal establishment/start-up costs. 
– Businesses must know/understand the legalities of business contracts so that they comply with all
the requirements. 
– Any other relevant answer related to recommendation for challenges of legal PESTLE factors.
OR
Economic
– Consider decreasing profit margins rather than increasing product prices. 
– Borrow money from financial institutions when interest rates are favourable. 
– Consider exchange rates when trading with other countries/Trade with countries with a favourable
exchange rate. 
– Provide shares at competitive/lower prices to attract more foreign direct investment. 
– Any other relevant answer related to recommendation for challenges of economic PESTLE factors.
NOTE: 1 Mark recommendations for ONE PESTLE factor only.
2 Mark technological or political or legislation or economic.
Max (6)
Breakdown of marks
Question 6 Marks
6.1 12
6.2.1 4
6.2.2 8
6.2.3 6
TOTAL 30
QUESTION 7
7.1 Introduction
– Strategic management involves a multidisciplinary process of purposefully managing organisational/business
resources to achieve goals/objectives. 
– It is conducted by management to implement specific strategies that are aimed at improving/retaining/enhancing
the competitive advantage of the business and to address various challenges of the business environments. 
– The strategic management process is defined as the way in which an organisation defines its strategy. 
– A strategy is a purposeful course of action that the business follows to achieve its purpose/objectives/goals/aims. 
– It enables managers to make choices/devise actions regarding a set of strategies that will enable the business to
enhance/achieve improved performance. 
– Diversification strategies are used by the business to expand operations into markets/industries that the business
has not currently explored. 
– Diversification strategies enables the business to expand its market share/enter new markets in order to explore new
sales avenues/achieve greater profitability. 
– The business must continuously evaluate strategies in order to change/adapt it according to current demands of the
market/industry. 
– Any other relevant introduction related to the strategic management process/types of diversification strategies/
advantages of diversification strategies/strategy evaluation.
Any (2 × 1) (2)
BS Grade 12 TG.indb 108 2022/03/14 10:18:44

Option 1
– Have a clear vision, mission statement and measurable/realistic/achievable objectives in place. 
– Identify strengths/weaknesses/opportunities/threats by conducting environmental scanning/situational analysis. 
– Use available tools/methods for environmental scanning, which may include a SWOT analysis/Porter’s Five Forces
model/PESTLE analysis/industrial analysis tools. 
– Formulate alternative strategies to respond to business challenges. 
– Develop/create (an) action plan(s), including the tasks to be completed/deadlines to be met/resources to be
procured, etc. 
– Organise the business resources and motivate staff. 
– Implement selected strategies by communicating it effectively/efficiently/correctly to all stakeholders. 
– Continuously evaluate/monitor/assess/measure strategies in order to take corrective action. 
– Accept any other relevant answer related to the strategic management process.
OR
Option 2
– Review/Analyse/Re-examine their vision/mission statement. 
– Conduct (an) environmental analysis/environmental scanning using models such as SWOT analysis/Porter’s Five
Forces model/PESTLE analysis. 
– Formulate a strategy such as a(n) integration/intensive/diversification/defensive strategy. 
– Implement a strategy, using a template such as an action plan. 
– Control/Evaluate/Monitor the implemented strategy to identify gaps/deviations/differences in implementation. 
– Take corrective action to ensure goals/objectives/aims are met. 
– Accept any other relevant answer related to the strategic management process.
NOTE: Award marks for facts presented in any order.
Max (12)
7.3 Types of diversification strategies
Concentric diversification 
– The business adds new products/services that are related to existing/current products/services but will appeal to
new customers/consumers. 
– Occurs when a business wants to increase/expand/progress its product range and markets. 
– The business creates a new product that is technologically similar to existing/current products that are aimed at
new customers/consumers/markets. 
– Occurs when a business uses existing infrastructure/organisational resources/expertise to create products with
some degree of similarity but with clear differentiation from existing/current products. 
– Any other relevant answer related to concentric diversification as a diversification strategy.
Diversification
2
strategy
Explanation 2
Submax 4
Horizontal diversification 
– The business adds new products/services that are unrelated to existing/current products, but which may appeal to
existing/current customers/consumers. 
– Occurs when a business acquires/merges with a business that is at the same production stage, but it may offer a
different product. 
– The business extends the production of products/services above/beyond the market/industry in which it currently
operates. 
– Occurs when the business increases its development potential/extends its brand and significantly reduces risk as
the new products are aimed at existing customers/consumers. 
– Any other relevant answer related to horizontal diversification as a diversification strategy.
Diversification
2
strategy
Explanation 2
Submax 4
BS Grade 12 TG.indb 109 2022/03/14 10:18:44

Conglomerate diversification 
– The business adds new products/services that are unrelated to existing products which may appeal to new groups
of customers. 
– Occurs when the business operates multiple product lines/business entities for entirely different industries/
consumers/customers. 
– The business grows into new products/services and markets. 
– Occurs when the business is able to increase overall product/service flexibility/proficiency by extending activities
to unexplored/untapped/unfamiliar markets. 
– Any other relevant answer related to conglomerate diversification as a diversification strategy.
Diversification
2
strategy
Explanation 2
Submax 4
Max (12)
7.4 Advantages of diversification strategies
– Increase in the number of products being sold to existing/new customers/consumers. 
– Reduce the risk of relying only on one product for sales/revenue/income. 
– Remain relevant/functional/operational in the context of everchanging business environments. 
– Accept any other relevant answer related to the advantages of diversification strategies.
Max (10)
7.5 Steps in strategy evaluation
– Examine/Assess the underlying basis of a business strategy. 
– Look forward and backwards into the implementation process. 
– Compare the expected performance with the actual performance. 
– Measure the business performance in order to determine the reasons for deviations and analyse these reasons. 
– Take corrective action so that deviations may be corrected. 
– Set specific dates for control and follow up. 
– Draw up a table/list of the advantages and disadvantages of a strategy. 
– Decide on the desired outcome. 
– Consider the impact of the strategic implementation in the internal and external environments of the business.
Max (12)
7.6 Conclusion
– The strategic management process allows the business to stay ahead of competitors and to increase their
market share. 
– Strategic management forms an integral part of the overall accountability of management. 
– Diversification strategies affords the business extensive opportunities to evolve its brand identity/boost brand
image. 
– Diversification strategies are used as a purposeful mechanism to potentially minimise/reduce current market/industry
downturn/protect the business from strong competitors. 
– Strategy evaluation enables a business to keep/remain abreast with changes in the business environments. 
– Strategy evaluation allows a business to evaluate/assess whether the intended strategy is serving its purpose. 
– Any other relevant conclusion related to the strategic management process/types of diversification strategies/
advantages of diversification strategies/strategy evaluation.
Any (1 × 2) (2)
[40]
BS Grade 12 TG.indb 110 2022/03/14 10:18:44

7.1 Introduction 2
7.2 Strategic management process 12
7.3 Types of diversification strategies 12 Max
7.4 Advantages of diversification strategies 10 32
7.5 Steps in strategy evaluation 12
7.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 111 2022/03/14 10:18:45

TOPIC 6 Business sectors and their
environments
Teaching tips:
How to introduce Specific strategies to teach/approach the topic
• Refer learners to the content covered in Grade 10: • Explain the reason why businesses may have full
– Business environments control, partial control or no control over the three
– Components of the business environments business environments.
– Business sectors • Refer to the elements or features of each business
• Refer learners to the content covered in Grade 11: environment when explaining the extent of control
– Link/relationship between the primary, secondary over each environment.
and tertiary sectors • Use the examples of challenges of the three
– Challenges experienced by business businesses environments in the learner’s book to
environments improve familiarity of these challenges so that
learners can link the challenges to the three business
environments.
Grade 10 & 11.
• Learners must be able to identify business • Consult the following past NSC Question Papers for
environments and explain the extent of control from Section B and C type questions:
given scenarios and statements. – May/June 2021 P1 Question 2.5 – scenario on
• Use the diagrams in the learner’s book for learners business sectors
to identify examples of activities that take place in – Nov 2020 P1 Question 2.3 – scenario on
the three business sectors. business sectors
• Use the diagram in the learner’s book on page 164 – June 2019 Question 2.6 – scenario on business
to emphasise the distinctions between the extent of sectors
control within each business environment. – Nov 2018 Question 2.3 – scenario on business
• Ensure that learners master the table on page 159 to sectors
improve their interpretation of the THREE business – May/June 2018 Question 2.6 – scenario on
environments. business sectors
consolidation.
BS Grade 12 TG.indb 112 2022/03/14 10:18:45

QUESTION 1
DOWN ACROSS
1 Market environment  2 No control 
3 Full control  4 Services 
5 Macro environment  6 Tertiary sector 
7 Primary sector  8 Some control 
9 Micro environment  10 Secondary sector 
(10 × 2) (20)
Breakdown of marks
Question 1 Marks
20
TOTAL 20
QUESTION 2
2.1.1 C 
2.1.2 B 
2.1.3 A 
2.1.4 D 
2.1.5 B 
(5 × 2) (10)
Breakdown of marks
Question 2 Marks
2.1 10
TOTAL 10
QUESTION 3
3.1 Business sectors from given statements
3.1.1 Tertiary sector 
3.1.2 Primary sector 
3.1.3 Tertiary sector 
3.1.4 Secondary sector 
(8)
3.2 Business sectors and business environments
3.2.1 Business sector from the scenario
Secondary sector 
Motivation:
Tauheer Kalam Textiles specialises in the manufacturing of contemporary clothing for various retail outlets. 
NOTE: 1 Award marks for the correct business sector if the quote is incomplete/incorrect.
2 Do not award marks for the motivation, if the business sector was incorrectly identified.
Max (3)
Topic 6 Business sectors and their environments 113
BS Grade 12 TG.indb 113 2022/03/14 10:18:45

3.2.2 – 3.2.4 Challenges of business environments and extent of control
CHALLENGES BUSINESS ENVIRONMENTS EXTENT OF CONTROL

(3.2.2) (3.2.3) (3.2.4)
1. The business goals are not Micro environment  Full/complete control 
constantly reviewed. 
2. There is currently a shortage of Market environment  Some/limited/less/partial
raw materials from suppliers.  control 
3. The new technological Macro environment  No control 
developments on textile equipment
is forcing TKT to improve on its
processes. 
Max (3) Max (3) Max (3)
NOTE: 1 Mark the first challenge for each environment only.

2 If the business environment is not linked to the challenge, mark the challenge only.
3 Award full marks for the business environment even if the challenge is not quoted in full.
4 The extent of control must be linked to the business environment.
5 Do not award marks for the extent of control if the business environment is incorrect/not stated.
6 The order in which the responses occur may be different.
3.3 Business sectors
Business sectors from the scenario
BUSINESS SECTORS QUOTATIONS

1. Primary sector  WS buy their raw materials from Noluntu Farmers
that cultivates and extracts fynbos flowers.
2. Secondary sector  FBT purchases their stock from Wellness Skincare

(WS), a local producer of natural skincare products.

3. Tertiary sector  Fynbos Beauty Therapists offers unique beauty
therapy services to their clients. 

2 Award marks for the correct business sector even if the quote is incomplete/incorrect.
3 Do not award marks for the quotations if the business sectors were incorrectly identified.
Max (9)
Breakdown of marks
Question 3 Marks
3.1 8
3.2.1 3
3.2.2 3
3.2.3 3
3.2.4 3
3.3 9
TOTAL 29
BS Grade 12 TG.indb 114 2022/03/14 10:18:45

TOPIC 7 Quality of performance
Teaching tips:
• Refer learners to content covered in Grade 10: • Practical examples should be used to highlight the
– Eight business functions differences between the quality concepts.
– Quality concepts • Learners should be encouraged to provide a detailed
– Importance of quality for the business analysis of each concept.
– Quality relates to the business functions • Teachers should identify key words in each
• Refer learners to content covered in Grade 11: concept that will be used to remind learners of the
– Quality circles differences between these concepts.
– Meaning of TQM • Practical examples should be given on the
differences between ‘quality control’ and ‘quality
assurance’.
Grade 10 & 11. • Practical examples and video clips can be used to
illustrate the distinctions between each quality
concept.
gaps.
• When teaching quality indicators, use the tips in
the learner’s book to distinguish between quality
indicators of the marketing function and public
relations function.
• Emphasise that all businesses strive to achieve
total customer/client satisfaction by correctly
implementing the four other TQM elements.
• Emphasise that monitoring and evaluation of
quality processes as a TQM element is aimed at
monitoring and evaluating the effectiveness of the
implementation of the other four TQM elements.
• Businesses that continuously improve their systems
and processes should be used as examples when
teaching this topic.
• Teach the impact of TQM elements on large
businesses by answering the how part, e.g. how
large businesses implement these TQM elements
and what are the advantages and disadvantages of
implementing these elements.
• When teaching ways in which TQM can reduce
the cost of quality, emphasise that businesses who
implement all five TQM elements reduce the cost of
quality. This means that they do not lose money and
resources on product defects.
Topic 7 Quality of performance 115
BS Grade 12 TG.indb 115 2022/03/14 10:18:45

• A clear distinction should be made between the six • Consult the following past NSC Question Papers for
concepts related to quality Section B and C type questions:
• It should be noted that quality assurance cannot – May/June 2021 P1 Question 3.5 – scenario on
be done before quality control, as the quality of TQM
machinery, employees and raw materials must first – May/June 2021 P2 Question 6 – essay on quality
be checked before production takes place. of performance
• Learners must be well conversant with the meaning – Nov 2020 P1 Question 3.7 – scenario on quality
of the quality concepts before they are taught the concepts
benefits of a good quality management system. – Nov 2020 P1 Question 4.4 –scenario on quality
• Emphasise that every business function is responsible circles
for ensuring that the final product or service is of a – Nov 2019 Question 5.6 – scenario on business
good quality standard. functions
• The focus should be on how large businesses – Nov 2019 Question 10 – essay on TQM
continually improve their systems and processes. – June 2019 Question 5.5 – scenario on benefits of
Note that the advantages of this element focus a good management system
on businesses, while the disadvantages focus on – June 2019 Question 10 – essay on quality of
employees. performance
– Nov 2018 Question 5.5 – scenario on TQM
elements
– Nov 2018 Question 8 – essay on quality
performance
– May/June 2018 Question 5.6 – scenario on
elements of TQM
impact if TQM is poorly implemented
quality indicators
– Feb/March 2018 Question 10 – essay on quality
of performance
consolidation.
BS Grade 12 TG.indb 116 2022/03/14 10:18:45

QUESTION 1
1.1 Quality concepts
1.1.1 Quality concepts from the scenario
QUALITY CONCEPTS MOTIVATIONS

1. Quality management  Mundle Bottling developed new methods
and techniques to improve the quality of their
products. 
2. Quality assurance  MB ensures that all their processes enable
them to get the product right the first time to
prevent mistakes from happening.
NOTE: 1The answer does not have to be in tabular format.

2Award marks for the correct quality concepts even if the motivation is incomplete/incorrect.
3Do not award marks for the motivation if the quality concepts were incorrectly identified.
4Mark the first TWO (2) quality concepts with the corresponding motivation only.
Max (6)
1.1.2 Other quality concepts
Quality 
– Quality is the ability of a product/service to satisfy specific needs of consumers. 
– It is measured against specific criteria such as physical appearance/reliability/durability/ sustainability/after-
sales services. 
– The efficiency of services and the ability to provide an effective outcome without too many delays. 
– Any other relevant answer related to quality as a quality concept.
Quality
2
concept
Explanation 1
Submax 3
Quality control 
– A system that ensures the desired quality is met by inspecting the final product to ensure that it meets the
required standards. 
– Includes setting targets/measuring performance and taking corrective measures. 
– Checking raw materials/employees/machinery/workmanship/production/processes to ensure that high
quality standards are maintained. 
– Any other relevant answer related to quality control as a quality concept.
Quality
2
concept
Explanation 1
Submax 3
Quality management systems 
– A quality management system is a framework that a business uses to manage key organisational
processes. 
– It is a formalised system that documents procedures/processes/responsibilities for achieving quality
policies/objectives. 
– Coordinates/directs organisational activities to meet customer/regulatory requirements/improve its
effectiveness/efficiency/accuracy on a continuous basis. 
– It is expressed as organisational goals/aspirations/processes/policies/ documented information/resources
needed to implement and maintain quality standards in the business. 
BS Grade 12 TG.indb 117 2022/03/14 10:18:45

– Aims to ensure that the quality of products/services is consistent/Focuses on the means to
achieve consistency. 
– Any other relevant answer related to quality management as a quality concept.
Quality
2
concept
Explanation 1
Submax 3
Quality performance 
– Total performance of each department measured against the specified standards. 
– Can be obtained if all departments work together towards the same quality standards. 
– Quality is measured through physical product/statistical output of processes/surveys of the users and/or
buyers/consumers of products/services. 
– Any other relevant answer related to quality performance as a quality concept.
Quality
2
concept
Explanation 1
Submax 3
NOTE: 1 Mark the first TWO (2) concepts only.

2 Do not award marks for responses provided in QUESTION 1.1.1.
Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 6
1.1.2 6
TOTAL 12
QUESTION 1
1.1 Benefits of a good quality management system
1.1.1 Benefits of a good quality management system from the scenario
– Regular training is conducted at Andries Engineering, which continuously improves the quality of their
employees’ skills. 
– AE takes pride in providing efficient customer services to increase the level of customer satisfaction. 
NOTE: 1 Mark the first TWO (2) responses only.
2 Do not award marks for quotes that are incomplete/not applicable in the scenario.
Any (2 × 1) (2)
1.1.2 Other benefits of a good quality management system
– Time and organisational resources such as finance/raw materials/labour are used efficiently. 
– Productivity increases through proper/effective time management/using high quality resources. 
– Products/Services are constantly improved resulting in increased levels of customer satisfaction. 
– Enhances the ability of the business to achieve its vision/mission/goals. 
– Business has a/improves its competitive advantage over its competitors. 
– Employers and employees will have a healthy working relationship resulting in happy/productive
workers./Improves the employee morale/productivity within the businesses. 
– Increased market share/more customers improve profitability. 
– Improves business image as there are less defects/returns. 
BS Grade 12 TG.indb 118 2022/03/14 10:18:45

– Improves the financial sustainability of the business as customers are retained. 
– Any other relevant answer related to the benefits of a good quality management system.
NOTE: Do not award marks for responses provided in QUESTION 1.1.1.
Max (8)
Breakdown of marks
Question 1 Marks
1.1.1 2
1.1.2 8
TOTAL 10
QUESTION 1
1.1 Quality indicators of business functions
1.1.1–1.1.2 Quality indicators of the business functions from the scenario and
Classification of quality indicators according to the relevant business function
QUALITY INDICATORS BUSINESS FUNCTIONS

(1.1.1) (1.1.2)
1. Mopeli Enterprises offer performance Human resources function 
incentives to all employees to improve
productivity.
2. Sam places orders timeously and ensures Purchasing function 
regular follow-ups with suppliers.
3. Thandi ensures that accurate tax payments Financial function 
are submitted timeously.
4. Johan was requested to promote the image Public relations 
of ME to various stakeholders.

2 Award marks for the quality indicators even if the business functions were incorrectly identified.
3 Do not award marks for the business functions, if the quality indicators were incorrectly quoted.
4 Award marks for the business functions even of the quotes are incomplete.
Max (12)
1.1.3 Quality indicators of business functions
General management function 
– Develop/Implement/Monitor/Maintain effective strategic plans. 
– Efficient organisation/allocation of business/organisational resources to provide for the successful
achievement of long-term and short-term plans. 
– Structured standards and norms should be in place so that control mechanisms can be implemented.
– Effectively communicate shared vision, mission and values. 
– Set direction and establish priorities for their business. 
– Lead by example/Set an example of the behaviour that is expected from employees regarding ethics/
professionalism/ productivity/work ethic. 
– Ensure that all departments/the business meet(s) their deadlines/targets/achieve goals. 
– Any other relevant answer related to the quality indicators of the general management function.
Business
2
function
Explanation 1
Submax 3
BS Grade 12 TG.indb 119 2022/03/14 10:18:45

Production function 
– The production manager should provide/ensure high quality products/services according to specifications. 
– The production/operating processes of a business is done through proper/effective production
planning/control. 
– The production manager should aim to produce products at the lowest possible cost to ensure
profit maximisation. 
– The production manager should communicate the roles and responsibilities to the production workers.
– Products meet customers’ requirements by being safe/reliable/durable. 
– Monitor processes and find/determine the root causes of production problems. 
– Implement quality control systems to ensure that quality products are consistently being produced. 
– Any other relevant answer related to the quality indicators of the production function.
Business
2
function
Explanation 1
Submax 3
Marketing function 
– Acquire a greater market share through good/effective/efficient customer service. 
– Gain customers’ loyalty by satisfying/meeting/exceeding their needs/wants/building positive relationships. 
– Adhere to ethical advertising practices when promoting products/services. 
– Identify competitive edge/gaps in the market and conduct regular market research. 
– Differentiate products from competitors to increase the target market/profitability. 
– Use different pricing techniques such as promotional/penetration pricing etc to ensure a competitive
advantage. 
– Use aggressive advertising campaigns to sustain the market share. 
– Any other relevant answer related to the quality indicators of the marketing function.
Business
2
function
Explanation 1
Submax 3
Administration function 
– Fast and reliable data capturing and processing systems. 
– Make reliable information available to management on time. 
– Make relevant information available for quick decision-making. 
– Use modern/updated technology efficiently/effectively. 
– All documentation is kept neatly and orderly in a safe place. 
– Easy to recall/find information/documentation. 
– Financial documents are kept up to date and recorded accurately. 
– Any other relevant answer related to the quality indicators of the administration function.
Business
2
function
Explanation 1
Submax 3
NOTE: 1 Mark the first TWO (2) business functions only.
2. Do not award marks for responses provided in QUESTION 1.1.1 and 1.1.2.
Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 4
1.1.2 8
1.1.3 6
TOTAL 18
BS Grade 12 TG.indb 120 2022/03/14 10:18:45

QUESTION 1
1.1 TQM elements
1.1.1 TQM elements from the scenario
TQM ELEMENTS MOTIVATIONS

1. Continuous improvement to processes and The management of SPL ensures that they
systems  understand the business operating and
production systems. 
2. Total client/customer satisfaction  Market research is always conducted by SPL to
monitor the needs of consumers. 

2 Award marks for the correct TQM element even if the quote is incomplete.
3 Do not award marks for the motivation if the TQM elements were incorrectly identified.
4 Mark the first TWO (2) TQM elements with the corresponding motivation only.
Max (6)
1.1.2 Other TQM elements
Continuous skills development/Education and training 
– The commitment of the business to participate in the continuous skills development/education and training
of all the employees at all levels within the business. 
– The correct/proper/efficient/effective training programmes must be conducted/provided/sourced in order to
train employees for the correct application of the various TQM concepts/techniques/ processes. 
– The business should conduct a skills audit to determine the qualifications/experience/competencies of
employees in their ability to influence the quality of products/services/processes. 
– Any other relevant answer related to continuous skills development/education and training as a TQM
element that could be applied by SPL as a business.
TQM element 2
Explanation 1
Submax 3
Adequate financing and capacity 
– The ability of the business to provide/acquire the correct adequate financing and capacity for all operational
requirements in the pursuit of implementing TQM effectively. 
– The business needs to ensure that there is adequate financing and capacity available for all operations/
projects/activities in order to meet TQM requirements. 
– To ensure that there is adequate financing and capacity, the business needs to apply sound financial
management practices such as investing surplus funds/budget correctly. 
– Any other relevant answer related to adequate financing and capacity as a TQM element that could be
applied by SPL as a business.
TQM element 2
Explanation 1
Submax 3
BS Grade 12 TG.indb 121 2022/03/14 10:18:45

Monitoring and evaluation of quality processes 
– The effective implementation of TQM requires monitoring and evaluation of quality processes throughout
the entire business. 
– The business needs to monitor and evaluate quality processes in order to determine/enhance the strengths/
success and reduce/remove weaknesses/barriers/obstacles in achieving/pursuing TQM. 
– This is a critical/important aspect within TQM as it allows the business to enhance existing practices and
ultimately improve the degree to which the business meets/exceeds customer needs. 
– Any other relevant answer related to monitoring and evaluation of quality processes as a TQM element that
could be applied by SPL as a business.
TQM element 2
Explanation 1
Submax 3
NOTE: 1 Mark the first TWO (2) TQM elements only.1.

Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 6
1.1.2 6
TOTAL 12
QUESTION 1
1.1 TQM elements
1.1.1 TQM element from the scenario
– Monitoring and evaluation of quality processes  
– Motivation: The management of National Satellite Services always modify interventions that may improve
the efficient use of resources. 
NOTE: Do not award marks for the motivation if the TQM element was incorrectly identified.
Max (3)
1.1.2 Other advantages of monitoring and evaluation of quality processes
– Monitoring and evaluating quality processes prevent  product defects/minimises customer complaints. 
– Good quality control checks/procedures minimises the replacement/breakdown  of items/equipment/
machinery regularly. 
– Large businesses may be better equipped  to get things right the first time. 
– Improve performance  and increase productivity/sales/profitability. 
– Any other relevant answer related to the advantages/positive impact of monitoring and evaluation of
quality processes.
NOTE: Do not award marks for responses that were quoted in QUESTION 1.1.1.
Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 3
1.1.2 6
TOTAL 9
BS Grade 12 TG.indb 122 2022/03/14 10:18:45

QUESTION 2
2.1 TQM elements
2.1.1 TQM elements from the scenario
TQM ELEMENTS MOTIVATIONS

1. Continuous skills development/Education and Skills audits are conducted by Booysen Tile
training  Producers to determine the competencies of
employees. 
2. Adequate financing and capacity  BTP has enough capital for running all their
operations. 
3. Total client/customer satisfaction  Regular market research has enabled BTP to
determine future needs of customers. 
Max (6) Max (3)

2 Award marks for the correct TQM element even if the quote is incomplete.
3 Do not award marks for the motivation, if the TQM elements were incorrectly identified.
4 Mark the first THREE (3) TQM elements with the corresponding motivation only.
Max (9)
2.1.2 Impact of TQM elements on large businesses
Continuous skills development/Education and training
– Large businesses have a human resources department dedicated to skills training and development. 
– Human resources experts ensure that training programmes are relevant/applicable to increased customer
satisfaction. 
– Ability to afford specialised/skilled employees. 
– May conduct skills audits to establish the competency/education levels of staff performing work which
could affect the quality of products/services/processes positively. 
– May be able to hire qualified trainers to train employees on a regular basis. 
– Any other relevant answer related to the positives/advantages of continuous skills development/education
and training as a TQM element on BTP as a large business.
AND/OR
– Poor communication systems in large businesses may prevent effective training from taking place. 
– Trained employees may leave for better jobs after they gained more skills. 
– Demotivates employees if they do not receive recognition/acknowledgement for training. 
– Employees may not be aware of the level of competency they should meet in order to achieve their
targets. 
– It may be difficult to monitor/evaluate the effectiveness of training. 
– Any other relevant answer related to the negatives/disadvantages of continuous skills development/
education and training as a TQM element on BTP as a large business.
Submax (6)
Adequate financing and capacity
– Large businesses have sufficient financing to test all processes before implementation thereof. 
– They can afford to have systems in place to prevent errors in processes/defects in raw materials /products. 
– Able to afford product research/market researchers to gather information. 
– Can afford to purchase quality raw materials and equipment. 
– Large businesses can afford high-paid specialists to conduct advanced training with employees. 
– Any other relevant answer related to the positives/advantages of adequate financing and capacity as a TQM
element on BTP as a large business.
AND/OR
BS Grade 12 TG.indb 123 2022/03/14 10:18:45

– If the demand for the business’s product suddenly increases, orders begin coming in faster than expected,
and the company lacks the capital required to fund the production of the stock to fill the orders. 
– Large rapidly growing businesses can consume large amounts of capital as they try to balance normal
operations and expansion. 
– Large businesses often spend large amounts of money on organisational resources/machinery and often
the return on investment is not earned in the short-term. 
– Financial capital is wasted when incorrect financial planning/budgeting/ineffective financial management
processes exists. 
– Incorrect financial planning/Huge amounts of accumulated debt by large business may limit the growth
strategy of the business/limit the ability of the business to meet its financial obligations. 
– Any other relevant answer related to the negatives/disadvantages of adequate financing and capacity as a
TQM element on BTP as a large business.
Submax (6)
Total client/customer satisfaction
– Large businesses use market research/customer surveys to measure/monitor customer satisfaction/
analyse customers’ needs. 
– Continuously promote/foster a positive business image. 
– Strive to understand and fulfil customer expectations by aligning cross-functional teams across
critical processes. 
– May lead to higher customer retention/loyalty and businesses may be able to charge higher prices. 
– Large businesses may be able to gain access to the global market. 
– Any other relevant answer related to the positives/advantages of total client/customer satisfaction as a
AND/OR
– Employees who seldom come into contact with customers often do not have a clear idea of what will
satisfy their needs. 
– A large business that is characterised as a monopoly have increased bargaining power and therefore do
not pursue customer satisfaction/do not have satisfy/meet customer needs. 
– Not all employees may be involved/ committed to total client satisfaction. 
– Reaction time to changing consumer demand may be influenced by a delay in market research/
information. 
– Large businesses who become complacent with (the) existing customer satisfaction/target market may
experience limited long term growth potential. 
– Any other relevant answer related to the negatives/disadvantages of total client/customer satisfaction as a
Submax (6)
NOTE: 1 Mark the first TWO (2) TQM elements with their corresponding impact only.
Max (12)
Breakdown of marks
Question 2 Marks
2.1.1 9
2.1.2 12
TOTAL 21
BS Grade 12 TG.indb 124 2022/03/14 10:18:45

QUESTION 1
1.1 PDCA model
1.1.1 Steps of the PDCA model from the scenario
STEPS OF THE PDCA MODEL MOTIVATIONS

1. Plan  Ingonyma Couriers developed a plan for
improvement to the processes and systems in
response to late deliveries to customers. 
2. Check/Analyse  Data was analysed to determine the results of
the change.

2 Award marks for the correct step of the PDCA model even if the quote is incomplete.
3 Do not award marks for the motivation, if the steps of the PDCA model were
4 Mark the first TWO (2) steps of the PDCA model with the corresponding motivation only.
Max (6)
1.1.2 Other steps of the PDCA model
Do 
– The business should implement the change on a small scale. 
– Implement the processes and systems as planned. 
– During this step the implementors aim to effectively/accurately execute the change based on the
plan/ method. 
– This step is essential in determining whether the change has viability/potential. 
– Any other relevant answer related to do, as a step of the PDCA model that could be applied by IC.
Step of the
2
PDCA model
Explanation 1
Submax 3
Act as needed 
– Implement the improvement to meet the needs of the business. 
– Devise strategies on how to continually improve. 
– If the change was successful, implement it on a wider scale. 
– The business should continuously revise the process until they get it right the first time. 
– Any other relevant answer related to act as needed, as a step of the PDCA model that could be applied
by IC.
Step of the
2
PDCA model
Explanation 1
Submax 3
NOTE: 1 Mark the first TWO (2) steps of the PDCA model only.
Max (6)
BS Grade 12 TG.indb 125 2022/03/14 10:18:45

1.1.3 Role of quality circles as part of continuous improvement to processes and systems
– Solve problems related to quality and implement improvements. 
– Investigate/identify problems and suggest solutions to management. 
– Ensure that there is no duplication of activities/tasks in the workplace. 
– Make suggestions for improving systems and processes in the workplace. 
– Improve the quality of products/services/productivity through regular reviews of quality processes. 
– Monitor/Reinforce strategies to improve the smooth running of business operations. 
– Reduce costs of redundancy in the long run. 
– Quality circles discuss ways of improving the quality of work/workmanship. 
– Contribute towards the improvement and development of the organisation. 
– Improve employees’ loyalty and commitment to the business and its goals. 
– Any other relevant answer related to the role of quality circles as part of continuous improvement to
processes and systems.
Max (8)
Breakdown of marks
Question 1 Marks
1.1.1 6
1.1.2 6
1.1.3 8
TOTAL 20
QUESTION 1
1.1 Ways in which TQM can reduce the cost of quality
1.1.1 Ways in which TQM reduces the cost of quality from the scenario
– Onyx Insurance Providers shares responsibility for quality output amongst management and workers. 
– Work systems that empower employees have been developed by OIP to find new ways of improving quality. 

Any (2 × 1) (2)
1.1.2 Other ways in which TQM can reduce the cost of quality
– Introduce quality circles to discuss ways of improving the quality of work/workmanship. 
– Schedule activities to eliminate duplication of tasks. 
– Train employees at all levels, so that everyone understands their role in quality management. 
– Work closely with suppliers to improve the quality of raw materials/inputs. 
– Improve communication about quality challenges/deviations, so that everyone can learn from experience. 
– Reduce investment on expensive, but ineffective inspection procedures in the production process. 
– Implement pro-active maintenance programmes for equipment/machinery to reduce/eliminate
breakdowns. 
– Any other relevant answer related to other ways in which TQM can reduce the cost of quality.
NOTE: 1 Mark the first THREE (3) responses only.
2 Do not award marks for answers provided in QUESTION 1.1.1.
Max (6)
BS Grade 12 TG.indb 126 2022/03/14 10:18:45

1.1.3 Negative impact of TQM if poorly implemented by the business
– Setting unrealistic deadlines that may not be achieved. 
– Employees may not be adequately/efficiently trained, resulting in poor quality products. 
– Decline in productivity, because of stoppages/delays. 
– Businesses may not be able to make necessary changes to satisfy the needs of customers. 
– The reputation of the business may suffer because of faulty products. 
– Customers will have many alternatives to choose from and the impact could be devastating
to businesses. 
– Investors might withdraw investment, if there is a decline in profits. 
– Bad publicity due to poor quality products supplied. 
– Decline in sales, as product returns from unhappy customers’ increase.
– High staff turnover, because of poor skills development/training. 
– Any other relevant answer related to the negative impact of TQM if poorly implemented by OIP/businesses.
Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 2
1.1.2 6
1.1.3 6
TOTAL 14
QUESTION 1
DOWN ACROSS
1 Production function  2 Quality management system 
3 Continuous skills development  4 Administration function 
5 Quality assurance  6 Total Quality management 
7 Adequate financing and capacity  8 Financial function 
9 Human resources function  10 Quality performance 
(10 × 2) (20)
Breakdown of marks
Question 1 Marks
20
TOTAL 20
BS Grade 12 TG.indb 127 2022/03/14 10:18:45

QUESTION 2
DOWN ACROSS
1 Quality management  2 Marketing function 
3 Public relations function  4 Total client satisfaction 
5 PDCA model  6 Quality 
7 Quality control  8 Purchasing function 
9 General management function  10 Quality circles 
(10 × 2) (20)
Breakdown of marks
Question 2 Marks
20
TOTAL 20
QUESTION 3
3.1 Multiple choice
3.1.1 D 
3.1.2 C 
3.1.3 B 
3.1.4 A 
3.1.5 D 
(5 × 2) (10)
Breakdown of marks
Question 3 Marks
3.1 10
TOTAL 10
QUESTION 4
4.1 TQM elements from given statements
4.1.1 Monitoring and evaluation of quality processes 
4.1.2 Total client/customer satisfaction 
4.1.3 Adequate financing and capacity 
4.1.4 Continuous skills development/Education and training 
4.1.5 Continuous improvement of processes and systems 
(5 × 2) (10)
4.2 Role of quality circles
4.2.1 Role of quality circles from the scenario
– Strategies are monitored at Groenwoud Forestry to improve the smooth running of business operations. 
– Suggestions for improving systems and processes in the workplace are provided to management. 
(2 × 1) (2)
BS Grade 12 TG.indb 128 2022/03/14 10:18:45

4.2.2 Other roles of quality circles
– Solve problems related to quality and implement improvements. 
– Investigate/identify problems and suggest solutions to management. 
– Ensure that there is no duplication of activities/tasks in the workplace. 
– Improve the quality of products/services/productivity through regular reviews of quality processes. 
– Reduce costs of redundancy in the long run. 
– Quality circles discuss ways of improving the quality of work/workmanship. 
– Contribute towards the improvement and development of the organisation. 
– Improve employees’ loyalty and commitment to the business and its goals. 
– Any other relevant answer related to other roles of quality circles as part of continuous improvement to
processes and systems.
NOTE: Do not award marks for answers provided in QUESTION 4.2.1.
Max (6)
4.3 Meaning of TQM
– TQM is an integrated system/methodology/process applied throughout the organisation, which helps to design/
produce/provide quality products/services to customers. 
– It is a thought revolution in management, where the entire business is operated with customer orientation in all
business activities. 
– TQM enables businesses to continuously improve on the delivery of products/services in order to satisfy the needs
of customers. 
– Management ensures that each employee is responsible/accountable for the quality of his/her work/actions. 
– Any other relevant answer related to the meaning of TQM.
Max (4)
4.4 Impact of TQM if poorly implemented by businesses
4.4.1 Ways in which the poor implementation of TQM has impacted on the operations of the business from
the scenario
– Unrealistic deadlines have been set by Phungula Software that may not be achieved by employees. 
– Investors have withdrawn because of a decline in profitability. 
(2 × 1) (2)
4.4.2 Impact of TQM if poorly implemented by the business.
– Employees may not be adequately/efficiently trained, resulting in poor quality products. 
– Decline in productivity, because of stoppages/delays. 
– Customers will have many alternatives to choose from and the impact could be devastating
to businesses. 
– Decline in sales, as product returns from unhappy customers’ increase. 
– High staff turnover, because of poor skills development/training. 
– Any other relevant answer related to the impact of TQM if poorly implemented by PS other than the
answers provided in QUESTION 4.4.1.
NOTE: Do not award marks for responses provided in QUESTION 4.1.1.
Max (6)
BS Grade 12 TG.indb 129 2022/03/14 10:18:45

4.5 Differences between quality control and quality assurance
QUALITY CONTROL QUALITY ASSURANCE

System that ensures the desired quality is met  by Checks carried out during  and after the production
inspecting the final product.  process. 
Ensures that finished products  meet the required Ensures that required standards have been met  at
standards.  every stage of the process. 
Includes setting targets/measuring performance  The ‘building in’ of quality as opposed to ‘checking
and taking corrective measures.  for’ quality. 
Any other relevant answer related to quality control. Any other relevant answer related to quality assurance.

2 Differences do not have to link but must be clear.
3 Award a maximum of TWO (2) marks if the distinction is not clear/Mark either quality control or
quality assurance only.
Max (4)
4.6 Quality indicators of the marketing function
4.6.1 Quality indicators of the marketing function from the scenario
– Hermanus Seafood Emporium differentiates their products from competitors. 
– Different pricing techniques such as promotional pricing are used by HSE to ensure a competitive advantage.
Any (2 × 1) (2)
4.6.2 Other quality indicators of the marketing function
– Acquire a greater market share through good/effective/efficient customer service. 
– Gain customers’ loyalty by satisfying/meeting/exceeding their needs/wants/building positive
relationships. 
– Adhere to ethical advertising practices when promoting products/services. 
– Identify competitive edge/gaps in the market and conduct regular market research. 
– Use aggressive advertising campaigns to sustain the market share. 
– Any other relevant answer related to other quality indicators of the marketing function that could be
displayed at HSE as a business.
2 Do not award marks for answers provided in QUESTION 4.6.1.
Max (4)
Breakdown of marks
Question 4 Marks
4.1 10
4.2.1 2
4.2.2 6
4.3 4
4.4.1 2
4.4.2 6
4.5 4
4.6.1 2
4.6.2 4
TOTAL 40
BS Grade 12 TG.indb 130 2022/03/14 10:18:45

QUESTION 5
5.1 Introduction
– Quality is the ability of a product/service to satisfy specific needs of consumers. 
– By providing high-quality products/services, the business has a much greater chance of being successful. 
– Continuous improvement to processes and systems refers to the ability/commitment of the business to pursue/
execute/achieve continuous improvement of processes and systems. 
– The effective implementation of TQM requires monitoring and evaluation of quality processes throughout the
entire business. 
– Large businesses must ensure that all stakeholders have the necessary knowledge to enhance the ability of the
business to improve the positive impact and reduce the negative impact of TQM. 
– Any other relevant introduction related to the benefits of a good quality management system/distinction between
quality management and quality performance/impact of continuous improvement to processes and systems; and
monitoring and evaluation of quality processes on large businesses/ways in which TQM can reduce the cost
of quality.
(2 × 1) (2)
– Effective customer services are rendered, resulting in increased customer satisfaction. 
– Regular training will continuously improve the quality of employees’ skills/knowledge/competencies. 
– Employers and employees will have a healthy working relationship resulting in happy/productive workers./Improves
the employee morale/productivity within the businesses. 
Max (10)
5.3 Differences between quality management and quality performance
QUALITY MANAGEMENT QUALITY PERFORMANCE

Techniques/tools/methods used to design/improve Total performance of each department measured
the quality of a product.  against the specified standards. 
Can be used for accountability within each of the Can be obtained if all departments work together
business functions.  towards the same quality standards. 
Aims to ensure that the quality of products/services Quality is measured through physical product/
is consistent/Focuses on the means to achieve statistical output of processes/surveys of the users
consistency.  and/or buyers/consumers of products/services. 
Any other relevant answer related to quality Any other relevant answer related to quality
management. performance.

3 Award a maximum of SIX (6) marks if the distinction is not clear/Mark either quality management
or quality performance only.
Max (12)
BS Grade 12 TG.indb 131 2022/03/14 10:18:45

5.4 Impact of TQM elements on large businesses
Continuous improvement to processes and systems
– Large businesses have more available/readily available resources to check on quality performance in each unit. 
– Enough capital resources are available for new equipment/technology required for processes and systems. 
– Large businesses have a person/department dedicated to the improvement of processes and systems. 
– They can afford to use the services of the quality circles to stay ahead of their competitors. 
– Large businesses are willing to take risks/try new processes and systems because they are able to absorb the
impact of losing money/financial resources. 
– Any other relevant answer related to the positives/advantages of continuous improvement to processes and systems
on large businesses.
AND/OR
– Quality control can become complicated with large scale manufacturing processes. 
– Systems and processes take time and effort to implement in large businesses as communication/buy-in may delay
the process. 
– Risk of changing parts of the business that are actually working well. 
– Not all negative feedback from employees and customers is going to be accurate, which may result in incorrect/
unnecessary changes to systems and processes. 
– Limitations regarding availability of machinery/technology may influence the ability of large businesses to
continuously improve processes and systems. 
– Any other relevant answer related to the negatives/disadvantages of continuous improvement to processes and
systems on large businesses.
Submax (6)
Monitoring and evaluation of quality processes
– Monitoring and evaluating quality processes prevent product defects/minimises customer complaints. 
– Good quality control checks/procedure minimises the replacement/breakdown of items/equipment/machinery on a
regular basis. 
– Large businesses may be better equipped to get things right the first time. 
– Improve performance and increase productivity/sales/profitability. 
– Modify interventions that may improve the efficient use of resources. 
– Any other relevant answer related to the positives/advantages of monitoring and evaluation of quality processes on
large businesses.
AND/OR
– Large businesses are often divided and the departments work in silos. 
– It is difficult to get everyone to communicate effectively and often the message is not received correctly. 
– It often takes longer to detect problems or respond to weaknesses. 
– It is not viable/possible to check quality of all the products. 
– Limited active/accurate monitoring and evaluation of quality processes may occur as some managers may view/
apply this TQM element as a mere routine/formality. 
– Any other relevant answer related to the negatives/disadvantages of monitoring and evaluation of quality processes
on large businesses.
Submax (6)
Max (12)
BS Grade 12 TG.indb 132 2022/03/14 10:18:46

5.5 Ways in which TQM can reduce the cost of quality
– Introduce quality circles to discuss ways of improving the quality of work/workmanship. 
– Schedule activities to eliminate duplication of tasks. 
– Share responsibility for quality output amongst management and workers. 
– Train employees at all levels, so that everyone understands their role in quality management. 
– Develop work systems that empower employees to find new ways of improving quality. 
– Work closely with suppliers to improve the quality of raw materials/inputs. 
– Improve communication about quality challenges/deviations, so that everyone can learn from experience. 
– Reduce investment on expensive, but ineffective inspection procedures in the production process. 
– Implement pro-active maintenance programmes for equipment/machinery to reduce/eliminate breakdowns. 
– Any other relevant answer related to ways in which TQM can reduce the cost of quality.
Max (12)
5.6 Conclusion
– By having good quality management systems the business is therefore, able to ensure its financial sustainability in
the future. 
– Quality of performance cannot take place without quality management as management must take a lead in setting
quality standards for each business function. 
– Businesses who implement all five TQM elements reduce the cost of quality and therefore, do not lose money and
resources on product defects. 
– Businesses need to evaluate the impact of TQM elements such as continuous improvement to processes and
systems, and montoring and evaluation of quality processes in order to reduce barriers/obstacles in achieving
TQM. 
– Any other relevant conclusion related to the benefits of a good quality management system/distinction between
quality management and quality performance/impact of continuous improvement to processes and systems;
and monitoring and evaluation of quality processes on large businesses/ways in which TQM can reduce the cost
of quality.
Any (1 × 2) (2)
[40]
5.1 Introduction 2
5.2 Benefits of a good quality management system 10
5.3 Differences between quality management and quality 12
performance
Max
5.4 Impact of TQM elements on large businesses: 12 32
• Continuous improvement to processes and systems
• Monitoring and evaluation of quality processes
5.5 Ways in which TQM can reduce the cost of quality 12
5.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 133 2022/03/14 10:18:46

TOPIC 8 Management and
leadership
Teaching tips:
• Recap the meaning of the concepts covered in • Make a clear distinction between the leadership
Grade 10. styles and leadership theories.
• Emphasise that the major differences between • It is advisable that the leadership theories must
management and leadership relates to how they first be taught before teaching the impact of each
deal with employees and how they make decisions. leadership style.
• Indicate to learners what will be covered under • It should be pointed out that the leadership theories
leadership styles and the three leadership theories. guide leaders on how to choose a leadership
• Emphasise the concepts that will be covered with style that is relevant to specific situations e.g. the
learners in this topic. charismatic leader will follow a transformational
leadership theory as a guide on how to influence
their followers to work hard.
• Practical examples and demonstrations can be used
to illustrate how each style would be applied in a
business.
• Learners’ knowledge on the situational leadership
theory must be extended through the use of key
words such as ‘task’, ‘relationships’ and ‘analysis’.
• It should be noted that leaders use the situational
leadership theory to choose an appropriate
leadership style that is relevant to current situation.
• Class discussions should focus on the word ‘positive
attitude’ when addressing the role of personal
attitude in successful leadership.
• The focus should be on how a positive attitude
contributes to a successful leadership.
• Examples of business leaders who became successful
due to their positive attitudes must be used in these
activities.
• The terms management and leadership are often • Use case studies from magazines or newspaper
used interchangeably, as if they have the same articles to assess learners informally on leadership
meaning. This is, however, not the case and learners styles and the application thereof.
must be reminded of this. • Use Google Form Quizzes to assess learners
• When learners are required to differentiate/ informally on the impact and application of the
distinguish between management and leadership, different leadership styles
the best way to answer this question is by drawing a • Consult the following past NSC Question Papers for
table and contrasting the differences. Section B and C type questions:
• Provide learners with case studies/scenarios that – May/June 2021 P2 Question 2.3 – scenario on
will enable them to identify the different leadership leadership theories
styles and provide quotations to motivate answers.
– Nov 2020 P2 Question 2.6 – scenario on
• The differences between types of leadership styles leadership styles
must be clearly outlined.
– Nov 2019 Question 3.3 – scenario on role of
• The focus must be on the meaning and application personal attitude in successful leadership
of each leadership style.
– June 2019 Question 3.6 – scenario on leadership
• Indicate to learners that the terms transformational styles
and transitional are used interchangeable, as both
– May/June 2018 Question 8 – essay on
refer to periods of change within a business.
management and leadership
BS Grade 12 TG.indb 134 2022/03/14 10:18:46

QUESTION 1
1.1 Multiple Choice
1.1.1 F 
1.1.2 E 
1.1.3 A 
1.1.4 B 
1.1.5 G 
(5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 1
1.1 Leadership styles
1.1.1 Leadership style from the scenario
Democratic leadership style 
Submax (2)
Motivation:
He regularly requests experienced employees to contribute ideas on how to increase their sales. 
NOTE: Do not award marks for the motivation if the leadership style was incorrectly identified.
Submax (1)
Max (3)
1.1.2 Impact of Democratic leadership
– The leaders do not have to rely on their own knowledge/skills to solve complex problems. 
– Leaders may invite employees to participate in the decision-making process and benefit from their
experiences/expertise. 
– Employees contribute a variety/innovative idea that may benefit the organisation/lead to improved
production techniques
– Employees feel empowered/motivated, resulting in increased productivity levels. 
– Regular communications between leaders and employees, leads to improved decision making. 
– Any other relevant answer related to the positives/advantages of the democratic leadership styles
AND/OR
– Input from inexperienced employees could lead to decisions that’s not in the best interest of the
organisation. 
– Leader may not be in the position to take decisions immediately,  because key employees are unable to
attend the meeting. 
– Could be demoralising to employees if a leader does not consider their inputs before making a decision. 
– Leader could delay making decisions because he/she is waiting for inputs from employees. 
– It’s not an ideal leadership style if the leader needs to make a decision in the event of an emergency in
the organisation. 
– The reliability of feedback provided by some employees may not be accurate. 
– Any other relevant answer related to the disadvantages of the democratic leadership styles
Max (8)
Topic 8 Management and leadership 135
BS Grade 12 TG.indb 135 2022/03/14 10:18:46

1.1.3 Situations in which the transactional leadership style could be applied within the workplace.
– The leader wants employees to exceed target levels. 
– The business wants to maximise employee performance.  
– Deadlines have to be met on short notice/under pressure.  
– Employees have a low morale.  
– The strategies/business structures are clear and do not have to change. 
– Any other relevant answer related to situations in which the transactional leadership style could be applied
within the workplace.
Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 3
1.1.2 8
1.1.3 6
TOTAL 17
QUESTION 1
1.1 Introduction
– A clear distinction is made between management and leadership and both have different roles within the business. 
– Various leadership theories guide leaders on the different leadership styles that may be applied in the workplace. 
– The autocratic and transactional leadership styles have a different impact on the business. 
– The Laissez-faire and situational leadership styles should be applied in suitable situations based on the needs of
the business. 
– Any other relevant introduction related to differences between management and leadership/ situational- and
transformational leadership theories/impact of the autocratic and transactional leadership styles/situations during
which the laissez-faire- and charismatic leadership styles could be applied.
(2 × 1) (2)
1.2 Differences between management and leadership
MANAGEMENT LEADERSHIP
• Manage processes by using their authority  • Lead by inspiring and motivating employees 
• Instructional in their approach when dealing with • Provide guidance and direction to employees 
employees  • Promotes creativity to improve productivity levels
• Follow the plans to reach targets.  
• Focus on organisation targets  • Focus on vision and mission of the organisation
• Focus on the processes involved in the production 
process  • Focus on potential of employees
• Control the actions of employees  • Influence the actions of employees
• Administer plans as set out by top-management • Creative/Innovative when dealing with challenges
 
• Task orientated, ensuring the job gets done  • People orientated, thus putting employees first
• Any other relevant answer related to 
management. • Any other relevant answer related to leadership.
NOTE: 1. The answer does not have to be in tabular format.
2. The distinction does not have to link but must be clear.
3. Award a maximum of SIX (6) marks if the distinction is not clear/Mark either management
or leadership.
Max (12)
BS Grade 12 TG.indb 136 2022/03/14 10:18:46

1.3 Situational and transformational/transitional leadership theories
Situational leadership theory
– Leaders are required to manage employees under a different conditions and different character traits are required
to deal with each situation within the workplace. 
– A different leadership style would be adopted by the leader, based on the prevailing circumstances at a
particular time. 
– Effective leaders may adopt the leadership style that will ensure that the goals of the organisation are achieved. 
– The relationship between the leader and the employeesare based on values of trust/ integrity/ respect. 
– Leaders possesses the skills/knowledgeto analyse situation/allocate tasks/ responsibilities to the most suitable
employees. 
– Conflict could arise if the leadership style is deemed inconsistent when dealing with employees in different
situations. 
– The effectiveness of this leadership theory is dependent on the relationship that exist  between the leader and
employees. 
– Any other relevant answer related to situational leadership theory.
Submax (6)
Transformational/Transitional leadership theory
– This leadership theory would be adopted by the leader during a period in which the organisation would experience
radical changes. 
– The leader may use his communication skills/passion/interaction with employees to convince employees to accept
the changes that are planned in the organisation. 
– Employees in turn respect/admire the leader/trust the leaders’ judgements  regarding the planned changes within
– Strategic thinking leaders uses this leadership theory to convince employeesto accept the long-term vision of
– Leaders have strong/charismatic personalities, that they use to increases the motivation/ productivity levels
of workers. 
– Employees are supported through-out this period of radical change and given opportunities to share their
thoughts/ideas without any constraints. 
– Leaders lead by exampleand workers respond by being focusing on their own outputs. 
– Workers take greater ownership of their responsibilities and are aware of their limitations and strengths. 
– Any other relevant answer related to transformational/transitional leadership theory.
Submax (6)
Max (12)
1.4. Impact of the autocratic and transactional leadership styles
Impact of the autocratic leadership styles
– The leader is in a position to take quick decisions, without consulting employees. 
– The leader has certainty that decisions will be made timeously,  without delays/work gets done on schedule. 
– There is no uncertainty regarding the source of instructions,  which comes directly from the leader. 
– Strict monitoring/control of production processes by the leader ensures quality products and services. 
– Clear/Consistent direction from the leader,  provides certainty to new employees. 
– The large workforce in certain business makes it impractical to meet/consult with employees. 
– Concise/Clear guidance could be given to newly appointed/inexperienced staff. 
– Any other relevant answer related to positive/advantages of the autocratic leadership style.
AND/OR
– Tension could arise between the leaders and employees, if there are disagreements on strategies 
– Employees could become frustrated/irritated if their inputs are not considered. 
– Productivity levels of the organisation could decrease significantly because employees are demotivated. 
– The organisation could lose out on new/innovative ideas/solutions from employees. 
– The business could experience high rates of absenteeism because employees do not feel valued. 
– The leaders may experience resistance from experienced/highly skilled employees. 
– Any other relevant answer related to negatives/disadvantages of the autocratic leadership style.
Submax (6)
BS Grade 12 TG.indb 137 2022/03/14 10:18:46

Impact of the transactional leadership style
– Linking rewards to targets encourages workers to work effectively/efficiently. 
– Incentives offered to employees who exceed targets increases the productivity levels of workers.
– Other employees are encouraged to work harder if they see fellow employees getting incentives for meeting/
exceeding targets. 
– Achieving the organisations goals become easier because workers feel valued/appreciated. 
– Employees are given targets and they know the targets they need to work towards. 
– Employees are aware of the punishment, should targets not be met. 
– Any other relevant answer related to positive/advantages of the transactional leadership styles.
AND/OR
– Employees may feel demoralised if they’re punished for not meeting targets. 
– Leader may need to monitor the performance of employees to ensure that targets are met. 
– Measuring the performance of workers constantly may detract the leader from performing other essential tasks. 
– The health of employees could be negatively affected by increased stress levels in pursuit of targets by
of employees. 
– It’s not a suitable leadership style for team work, because the failure of one member to achieve his/her targets
may affect the incentives of all members. 
– Any other relevant answer related to negatives/disadvantages of the transactional leadership style.
Submax (6)
Max (12)
1.5 Situations in which the laissez-faire- and charismatic leadership styles could be applied within the workplace
Laissez-faire leadership style
– The leader is occupied with more important aspects of the business and delegation of of duties may improve the
efficiency of the organisation. 
– Employees are experienced in their chosen field, are often trusted/relied on by the leader to make responsible
decisions. 
– Leadership potential exists amongst employees and that they need opportunities to acquire additional skills. 
– Employees have acquired a greater level of knowledge/skills on a particular subject matter than what the leader
have acquired. 
– Any other relevant answer related to situations during which the laissez-faire leadership styles could be applied
Submax (4)/(6)
Charismatic leadership style
– Organisation wants to implement changes and uses the leader to get the support of employees. 
– The leader wants to boost the morale of employees, who may be demotivated. 
– The leader wants employees to continue on the path of high productivity/efficiency levels. 
– Confidence levels of employees are low; and employees need to be inspired. 
– Any other relevant answer related to situations during which the charismatic leadership styles could be applied
Submax (4)/(6)
Max (10)
1.6 Conclusion
– Effective managers and leaders create career opportunities for employees and inspire them to achieve the
organisation’s objectives. 
– Leadership theories such as the situational leadership theory and the transformational/transitional leadership theory
aid in improving the role of leadership in the workplace. 
– Leaders/managers should strive to derive the positive impact of the autocratic leadership and transactional
leadership style and reduce the negative impact of these leadership styles on business operations. 
– Different leadership styles can be applied by leaders/management based on the prevailing situations within the
workplace. 
BS Grade 12 TG.indb 138 2022/03/14 10:18:46

– Any other relevant conclusion related to differences between management and leadership/ situational- and
transformational leadership theories/impact of the autocratic and transactional leadership styles/situations during
which the laissez-faire- and charismatic leadership styles could be applied.
Any (1 × 2) (2)
[40]
1.1 Introduction 2
1.2 Differences between management and leadership 12
1.3 Situational and transformational leadership theories 12
1.4 Impact of the autocratic and transactional leadership styles 12 Max
32
1.5 Application of leadership styles:
– Laissez-faire leadership style 10
– Democratic leadership style
1.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
QUESTION 1
1.1 Multiple Choice
1.1.1 D 
1.1.2 C 
1.1.3 A 
1.1.4 B 
1.1.5 C 
(5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 2
2.1. Leadership theories
– transformational leadership theory 
– situational leadership theory 
– leaders and followers 
NOTE: Mark the first THREE (3) responses only.
(3 × 1) (3)
BS Grade 12 TG.indb 139 2022/03/14 10:18:46

2.2. Differences between management and leadership
MANAGEMENT LEADERSHIP
• Manage processes by using their authority.  • Lead by inspiring and motivating employees. 
• Instructional in their approach when dealing with • Provide guidance and direction to employees. 
employees.  • Promotes creativity to improve productivity levels.
• Follow the plans to reach targets.  
• Focus on organisation targets.  • Focus on vision and mission of the organisation.
• Focus on the processes involved in the production 
process.  • Focus on potential of employees. 
• Control the actions of employees.  • Influence the actions of employees. 
• Administer plans as set out by top-management. • Creative/Innovative when dealing with challenges.
 
• Task orientated, ensuring the job gets done.  • People orientated, thus putting employees first.
• Any other relevant answer related to 
management. • Any other relevant answer related to leadership.

3. Award a maximum of TWO (4) marks if the distinction is not clear/Mark either management
or leadership.
Max (8)
2.3.1 Laissez-fare/free reign leadership style (2)
Motivation:
Tido requested his skilled employees to use their own work methods without violating business policies. 
(1)
NOTE: 1 Award marks for the leadership style even if the quote is incomplete.
2 Do not award marks for the motivation if the leadership style was incorrectly identified.
Max (3)
2.3.2 Impact of laissez-fare/free reign leadership style
– Employees are trusted/given the responsibility of making decisions in areas of their own expertise. 
– Employees don’t need to consult the leader, when making decisions which may benefit the organisation. 
– Motivation levels of employees increases, because the leader recognises their abilities/ skills to make
decisions. 
– Productivity levels of the organisation could increase significantly because employees feel valued/
appreciated. 
– Employees experience personal growth/development as they are allowed to make decisions on their own. 
– The leadership skills of individual employees may develop as they interact with other employees in
decision making. 
– Any other relevant answer related to the positives/advantages of the laissez-faire/free reign leadership style.
AND/OR
– The uncertainty regarding clear decision making could be influence the morale of employees negatively. 
– Employees could be hesitant to take decisive actions, which could affect their work performance. 
– Conflict could arise between employees/fellow team members, if the actions of employees with strong
personalities are questioned. 
– The leader does not become involved in disagreements amongst employees. 
– Employees may find it difficult to get fellow members to meet deadlines,  which may impact negatively on
deadlines being met. 
BS Grade 12 TG.indb 140 2022/03/14 10:18:46

– Productivity levels may decrease if the employees lack the skills/knowledge necessary to make the right
decisions
– Any other relevant answer related to the positives/advantages of the laissez-faire/free reign leadership style.
Max (8)
2.4. Situations in which leadership styles can be applied
2.4.1 Charismatic leadership styles
– The organisation wants to implement changes and uses the leader to get the support of employees. 
– The leader wants to boost the morale of employees, who may be demotivated. 
– The leader wants employees to continue on the path of high productivity/efficiency levels. 
– Confidence levels of employees are low; and employees need to be inspired
– Any other relevant answer related to situations in which charismatic leadership style can be applied
Max (4)
2.4.2 Autocratic leadership styles
– If a crisis arises within the organisation that requires immediate action on the part of the leader. 
– In the event of an emergency occurring that requires the leader to act immediately to avoid loss of
life/serious injury to workers. Example: To evacuate the building in the event of a fire in an office of
a manager. 
– The leader has all the information at his disposal and do not require further input from employees. 
– The leader needs to exert his authority on employees who regularly disregards the organisational
policies/procedures. 
– The leader has earned the trust of the employees and they are willing to accept his judgements. 
– The business appointed inexperienced/new employees that could benefit from the type of leadership. 
– Any other relevant answer related to situations in which autocratic-leadership style can be applied.
Max (4)
Breakdown of marks
Question 2 Marks
2.1 3
2.2 8
2.3.1 3
2.3.2 8
2.4.1 4
2.4.2 4
TOTAL 30
QUESTION 3
3.1 Introduction
– A variety of leadership styles are available to leaders to inspire and motivate employees. 
– A leader’s preferred leadership styles is determined to a large extent by his/her personal beliefs, attitudes and
past experiences. 
– The leadership style adopted by certain leaders are influenced by the situations during which the leader finds
himself/herself. 
– Leadership theories guide leaders/managers on how to address/manage certain situations.
– Personal attitude refers an individual’s emotional, psychological, and physical responses to events that influence
their achievements. 
– Another relevant introduction related to differences between democratic and autocratic leadership styles / impact of
the charismatic and transactional leadership styles / transformational and leaders and followers leadership theories/
role of personal attitude in successful leadership.
Any (2 × 1) (2)
BS Grade 12 TG.indb 141 2022/03/14 10:18:46

3.2 Differences between the democratic and autocratic leadership styles
DEMOCRATIC LEADERSHIP STYLE AUTOCRATIC LEADERSHIP STYLE
• Invites employees to be part of the decision- • All decisions are taken by the leader alone,
making process.  without employee involvement 
• Open communication between the leader and • Employees are told what to do and how it must
employees.  be done
• People-oriented, taking into consideration the • Task-orientated, with the focus on the end result
opinions of employees.  and not the employees
• Empowers workers by involving them in the • Positive effect on novice/new workers who values
decision-making process.  the micro management style
• Experienced employees provide the leader with • Most appropriate leadership style in the event of
valuable advice and support.  a crisis/emergency
• Employees are involved in finding solutions to • Disagreements are resolved by the leaders telling
disagreements that may arise.  the parties how to resolve it
• Any other relevant answer related to democratic • Any other relevant answer related to autocratic
leadership style. leadership style
3. Award a maximum of TWO (4) marks if the distinction is not clear/Mark either democratic
leadership style or autocratic leadership style.
Max (8)
3.3 Impact of the charismatic and transactional leadership styles
Charismatic leadership style
– Leader communicates the vision/goals of the organisation in a concise/clear manner, that inspire confidence
amongst employees. 
– Employees are inspired by the energy/passion of the charismatic leader. 
– Employees are motivated to exceed their own expectations/overcome their own fears. 
– Employees are made to feel valued/appreciated, which encourage them to worker harder and improve
productivity levels. 
– Any other relevant answer related to the positives/advantages of the charismatic leadership style.
AND/OR
– Leader may promote their own personal interest,  instead of leading for the benefit of the organisation. 
– Employees rely on the leader to improve their moral/motivation levels. 
– The organisation may be over-reliant on the presence of the leader,  which could harm the organisation if the
leader should leave the organisation. 
– Employees could also be reluctant to challenge the leader on important issues, which may impact negatively
organisation achieving their goals. 
– Any other relevant answer related to the negatives/disadvantages of the charismatic leadership style.
Submax (6)
Transactional leadership styles
– Linking rewards to targets encourages workers to work effectively/efficiently. 
– Incentives offered to employees who exceed targetsincreases the productivity levels of workers. 
– Other employees are encouraged to work harder if they see fellow employees getting incentives for meeting/
exceeding targets. 
– Achieving the organisations goals become easier because workers feel valued/appreciated. 
– Employees are given targets/they know the targetsthey need to work towards. 
– Employees are aware of the punishment,  should targets not be met. 
– Any other relevant answer related to the positives/advantages of the transactional leadership style.
AND/OR
BS Grade 12 TG.indb 142 2022/03/14 10:18:46

– Employees may feel demoralised if they’re punished for not meeting targets. 
– Leader may need to monitor the performance of employees to ensure that targets are met
– Measuring the performance of workers constantly may detract the leader from performing other essential tasks
– The health of employees could be negatively affected  by increased stress levels in pursuit of targets by
of employees. 
– It’s not a suitable leadership style for team work,  because the failure of one member to achieve his/her targets
may affect the incentives of all members. 
– Any other relevant answer related to the negatives/disadvantages of the transactional leadership style.
Submax (6)
Max (12)
3.4 Leadership theories
Transformational leadership theory
– This leadership theory would be adopted by the leader during a period in which the organisation would experience
radical changes.
– The leader may use their communication skills/passion/interaction with employees to convince employees to
accept the changes that are planned in the organisation.
– Employees in turn respect/admire the leader/trust the leaders’ judgements regarding the planned changes within
the organisation.
– Strategic thinking leaders uses this leadership theory to convince employees to accept the long-term vision of
the organisation.
– Leaders have strong/charismatic personalities, that they use to increases the motivation/ productivity levels
of workers. 
– Employees are supported through-out this period of radical change/given opportunities to share their thoughts/
ideas without any constraints. 
– Leaders lead by example/workers respond by being focusing on their own outputs. 
– Workers take greater ownership of their responsibilities and are aware of their limitations and strengths. 
– Any other relevant answer related to the transformational leadership theory.
Submax (8)
Leaders and follower’s leadership theory
– The relationship between the leader and employees has a major impact on the goals that the organisation has set
out to achieve. 
– Employees, as followers of the leader, follow the instructions of the leader and collectively work towards the
organisation’s goals.
– Leaders allow followers to be creative/innovative/encourages followers explore alternative methods to
increase productivity. 
– Leaders lead by example/provides incentives for positive behaviour. 
– Followers takes responsibility for goals/targets not achieved. 
– Innovation/Creativity of some followers are stifled as they simply follow the leader and other followers. 
– Any other relevant answer related to the leaders and followers leadership theory.
Submax (8)
Max (16)
3.5 Role of personal attitude in successful leadership
– Positive attitude releases leadership potential. 
– A leader’s good/bad attitude can influence the success/failure of the business. 
– Leaders must know their strengths and weaknesses to apply their leadership styles effectively. 
– Great leaders understand that the right attitude will set the right atmosphere. 
– Leaders’ attitude may influence employees’/teams’ thoughts/behaviour. 
– Leaders should model the behaviour that they want to see in team members. 
– Successful leaders consider the abilities/skills of team members to allocate tasks/roles effectively. 
– Enthusiasm produces confidence in a leader. 
– A positive attitude is critical for good leadership because good leaders will stay with the task regardless of
difficulties/challenges. 
– Any other relevant answer related to the role of personal attitude in successful leadership.
Max (10)
BS Grade 12 TG.indb 143 2022/03/14 10:18:46

3.6 Conclusion
– Leaders who understand various leadership styles and theories may be able to lead effectively and handle
any situation.
– The success of the organisation depends to a large extent on the leadership provided. 
– Managers can also be successful leaders if they not only focus on the task at hand, but also the people/workers who
will execute the task.
– A leader who is positive/enthusiastic/energetic will inspire his followers to improve/empower/uplift themselves to
achieve their own personal goals.
– Another relevant conclusion related to differences between democratic and autocratic leadership styles/impact of
the charismatic- and transactional leadership styles/transformational and leaders and follower’s leadership theories/
role of personal attitude in successful leadership.
Any (1 × 2) (2)
[40]
3.1 Introduction 2
3.2 Differences between democratic and autocratic leadership styles 8
3.3 Impact of charismatic and transactional leadership styles 12 Max
3.4 Transformational and leaders and followers leadership theories 16 32
3.5 Role of personal attitude in successful leadership 10
3.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 144 2022/03/14 10:18:46

TOPIC 9 Investment: Securities
Teaching tips:
• Emphasise that investment securities are an • Teachers must provide detailed descriptions of the
important way of acquiring wealth for individuals different type of investments and ensure that this
and businesses. topic is adequately taught and assessed during the
• Various investment opportunities are available. academic year.
• Certain investors want to grow wealth. • Learners can be requested to visit financial
institutions and conduct research on types of
• Other investors want to generate additional income.
investments, their risk factors and the impact on
• Risk associated with each investment. businesses.
• Provide examples of types of investment that are
relevant to each investment decision.
• The different types of preference shares and types of
shares must be tabulated and discussed.
• Learners’ ability to list, state, name and explain the
different types of preference shares and to identify
these concepts from given statements/scenarios
could be assessed through aspect testing.
• Practical examples and demonstrations are
also useful tools to achieve the desired level of
understanding.
• Investment decision factors must be linked to the • Consult the following past NSC Question Papers for
decisions to invest. Section B and C type questions:
• Make learners aware that the concepts of ‘liquidity’ – May/June 2021 P2 Question 4.4 – calculation of
and ‘liquidation’ are from entirely different topics, compound interest
although they are almost similar in pronunciation – Nov 2020 P2 Question 4.2 – identify types of
but the meaning is different. preference shares
– Nov 2020 P2 Question 5 – Essay on investment
– June 2019 Question 3.5 – calculation of
compound interest
– June 2019 Question 8 – essay on securities
– Nov 2018 Question 3.5 – calculations on simple-
and compound interest
– Nov 2018 Question 8 – essay on securities
– May/June 2018 Question 6.4 – scenario on type
of investments
– Feb/March 2018 Question 8 – essay on securities
Topic 9 Investment: Securities 145
BS Grade 12 TG.indb 145 2022/03/14 10:18:46

QUESTION 1
1.1 Complete the statements:
1.1.1 inflation rate 
1.1.2 liquidity 
1.1.3 Johannesburg Securities Exchange 
1.1.4 risk 
1.1.5 tax  (5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 1
1.1 Types of investment opportunities and risk factors
1.1.1 Managed portfolio 
Submax (2)
Motivation:
Mandy Frazer, a new investor at HIS, requested the company’s financial advisor to manage her various
investments in one basket. 
NOTE: 1. Award marks for the type of investment even if the quote is incomplete.
2. Do not award marks for the motivation if the type of investment was incorrectly identified.
Submax (1)
Max (3)
1.1.2 Risks associated with a managed portfolio
– The risks linked to a managed portfolio is lower over a longer period.
– The risks linked to the investments are spread out because investments are made in several companies.
– Financial advisors prefer investing funds in the capital market.
– Unexpected changes in the market may negatively impact the portfolio in the short term with high risks
linked to the investment.
– Any other relevant answer related to the risk associated with a managed portfolio.
Max (6)
1.2 Risk associated with mutual funds/stokvels and debentures
1.2.1 Mutual funds/Stokvels
– Members could be contributing to an illegal financial scheme and could lose all the money contributed. 
– The possibility exists that a member could be unable to contribute his/her monthly savings. 
– The investment is linked to low risk and money of the investors are relatively safe. 
– Any other relevant answer related to risks associated with mutual funds/stokvels.
Max (4)
1.2.2 Debentures:
– Debentures have a low risk as they need to be paid back. 
– Companies are liable to repay the original amount of the debenture plus interest, which decrease the risk
for the investor. 
BS Grade 12 TG.indb 146 2022/03/14 10:18:46

– Investors may earn a steady income in the form of interest while preserving their principal amount. 
– Any other relevant answer related to risks associated with debentures.
Max (4)
Breakdown of marks
Question 1 Marks
1.1.1 3
1.1.2 6
1.2.1 4
1.2.2 4
TOTAL 17
QUESTION 1
1.1 Introduction
– The primary aim of any investment in businesses is to get a return on the investment. 
– This simply means that at the end of the investment period, the investor wants his investment back plus any other
additional money that he/she would’ve made on the investment. 
– Various investment opportunities are available to the investor and he/she must take variety of factors into
consideration before making an investment. 
– The investor has the option of investing in either ordinary shares or preference shares when investing in a company. 
– The choice of shares the investor invest in is determined by his/her personal financial circumstances. 
– Any other relevant introduction related to factors that should be considered when making an investment decision/
ordinary and preference shares/ types of preference shares/ impact of unit trusts as a form of investment.
Any (2 × 1) (2)
1.2 Factors that should be considered when making an investment decision
Risk
– The risk linked to investment opportunities refers to the doubt/uncertainty  that exists regarding the extent of any
gains/losses that an investor could make. 
– Different investment opportunities  have different risks linked to them. 
– Certain shares do have a low risk over  an extended investment period. 
– Shares with higher risks  have a greater potential for higher returns.
– Investment in ordinary shares has a higher risk as the investor may lose the full/part of the investment  when the
company is dissolved/declared bankrupt/liquidated.
– The investment in preference shares have a lower risk linked to his investment,  because he/she will have rights to
the company’s assets should it be declared insolvent. 
– Any other relevant answer related to the meaning of risk when making investment decisions.
Submax (4)
Inflation rate
– Inflation refers to a general increase in the price of goods and services,  whist the value of money decreases as a
result thereof. 
– The higher the inflation rate , the lower the purchasing power of money. 
– Investors seek those investments in which the return on investment  is higher than the inflation rate. 
– The value of certain assets like property increases as inflation increases,  thus providing the investors with a higher
rate of return. 
– Any other relevant answer related to inflation rate as a factor that must be considered when making
investment decisions.
Submax (4)
Max (8)
BS Grade 12 TG.indb 147 2022/03/14 10:18:46

1.3 Distinction between ordinary shares and preference shares
ORDINARY SHARES PREFERENCE SHARES
The shareholder is only entitled to receive a return on The shareholders of a certain type of preference
his investment  when the company makes a profit shares are entitled to dividend payment  regardless
and declares a dividend. of whether the company declares a dividend payment
or not.
A higher dividend is payable to the shareholder  if The shareholder will receive a fixed rate of return 
the profits are higher. regardless of the amount of the profit.
Should the company be liquidated, the shareholder Should the company be liquidated, the shareholder
will be paid only after  the preference shareholders will be paid before  the ordinary shareholders get
have been paid from the sale of the remaining paid from the sale of the remaining assets.
assets.
The shareholder receives standard shares  with no The shareholder receives special privileges  in terms
special privileges. of dividend payments.
The dividend payments to shareholders fluctuate The dividend payments to shareholders are fixed
from year to year , and in certain years no dividends , and payments made depend on the type of
are paid. preference shares purchased.
The shareholder has the right to participate and vote The voting rights of the shareholder is limited 
 at the Annual General Meetings of the company. to issues affecting the rights of the preference
shareholders.
Any other relevant answer related to ordinary shares. Any other relevant answer related to preference
shares.
2. The distinction does not have to link, but must be clear.
3. Award a maximum of EIGHT (8) marks if the distinction is not clear/Mark either ordinary shares
or preference share only.
Max (16)
1.4 Types of preference shares
Participating preference shares 
– The investor is certain of receiving a minimum  fixed dividends from the company. 
– Any surplus profit the company may have made  must be shared with the investor. 
– The investor is entitled to receive higher dividend payments  in the event of the company making higher profits. 
– Entitled to receive payments before the ordinary shareholders  if the company should be declared insolvent/
bankrupt. 
– Any other relevant answer related to participating preference shares.
Submax (4)
Non-participating preference shares/Ordinary preference shares 
– The investor is certain of receiving  a minimum fixed dividend from the company. 
– Do not share in any surplus profit  the company may have made. 
– The investor is not entitled to receive higher dividend payments  in the event of the company making higher
profits. 
– If the company should be liquidated the investor will be paid back his original investment  and all unpaid
dividends due to him/her. 
– Any other relevant answer related to non-participating preference shares/ordinary preference shares.
Submax (4)
Cumulative preference shares 
– Investors will receive, payments for past dividends that were not paid out due to poor financial performance
by the company. 
– Any other relevant answer related to cumulative preference shares.
Submax (4)
BS Grade 12 TG.indb 148 2022/03/14 10:18:46

Non-cumulative preference shares 
– Investors will not receive, payments for past dividends that were not paid  out due to poor financial performance
by the company. 
– Any other relevant answer related to non-cumulative preference shares.
Submax (4)
Redeemable preference shares 
– Investors are able to sell the shares back to the company from which they bought  it, at a fixed price should the
company so desire. 
– Any other relevant answer related to redeemable preference shares.
Submax (4)
Non-redeemable preference shares 
– Investors are able to sell the shares back to the company from which they bought it,  should the company close
down for reasons other than bankruptcy/insolvency. 
– Any other relevant answer related to non- redeemable preference shares.
Submax (4)
Convertible preference shares 
– The investor is able to convert the shares into a fixed number of ordinary shares  on a future date determined on
the date the shares were issued. 
– Any other relevant answer related to convertible preference shares.
Submax (4)
Non-convertible preference shares 
– The investor is able to convert the shares  into a fixed number of ordinary shares. 
– Any other relevant answer related to non-convertible preference shares.
Submax (4)
NOTE: Mark the first FOUR (4) types of preference shares.
Max (12)
1.5 Impact of unit trusts
– Unit trusts are funds of investors that are pooled together and managed by a fund manager on behalf of the
investors who buys shares on the JSE. 
– The fund manager chooses from a variety of share options that offer low risks to high risks investments. 
– The investments are managed according to predetermined rules and procedures, making it a safe investment. 
– The amounts that may be invested each month varies from small amounts to high amounts
– Investment is easy for the investors, with options like online investment offered to investors. 
– Investors have free access to the funds and may convert it to cash in the event of an emergency. 
– Lowers the potential risk and allows more people to invest in the fund. 
– Any other relevant answer related to the positives/advantages of unit trusts as a form of investment.
AND/OR
– Share prices as a rule are subject to fluctuations, which may increase the risk of this investment. 
– Growth of unit trust investments are dependent on the, established and well recognised companies in which shares
were bought, continue to grow/expand. 
– The funds of the unit trust are limited to contributions of members thereof and may not be increased by
other borrowings. 
– This investment option is not recommended to investors who wants to invest for a limited period of time. 
– This investment option is not suitable for investors who wants to evade risks.
– Any other relevant answer related to the negatives/disadvantages of unit trusts as a form of investment.
Max (10)
1.6 Conclusion
– Before making any decisions on investment, the investor must consider the different factors when making
investment decisions. 
– Shareholders have different types of preference shares from which to choose based on their investment needs. 
– The investor must carefully consider whether the invest in preference shares or in ordinary shares. 
BS Grade 12 TG.indb 149 2022/03/14 10:18:46

– Unit trusts have a different impact which is considered by investors before commencing with the investment. 
– Any other relevant conclusion related to factors that should be considered when making an investment decision/
ordinary and preference shares/ types of preference shares/ impact of unit trusts as a form of investment.
Any (1 × 2) (2)
[40]
1.1 Introduction 2
1.2 Factors to consider when making informed investment decisions 8
1.3 Distinction between ordinary and preference shares 16 Max
1.4 Types of preference shares 12 32
1.5 Impact of unit trusts 10
1.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
QUESTION 1
1.1 Simple interest
Interest = P × r × t = R 100 000 × 0.08 × 3 
= R 8 000 × 3 
= R 24 000 (4)
NOTE: 1. Award full marks (4) if the answer is correct and no workings are shown.
2. If the formula and workings were shown correctly but the final answer is wrong, award a
maximum of THREE (3) marks.
3. If the workings and the answer are incorrect, award a maximum of ONE mark for the formula.
1.2 Compound interest
Option 1:
Year 1: R 100 000 × 0.08 × 1 = R 8 000.00 
Year 2: R 108 000 × 0.08 × 1 = R 8 640.00 
Year 3: R 116 640 × 0.01 × 1 = R 9 331.20 
Total interest : R 8 000 + R 8 640 + R 9 331.20 = R 25 971.20 
OR
Option 2:
Interest = P × (1 + i)n – P = R 100 000 × (1+0.08)3 – R 100 000 
= R 100 000 × (1.08)3 – R 100 000  = R 100 000 × (1.08 × 1.08 × 1.08) – 100 000 
= R 100 000 × (1.259712) – R 100 000
= R 125 971.20 - R 100 000 
= R 25 971.20 
Max (4)
BS Grade 12 TG.indb 150 2022/03/14 10:18:46

1.3 Recommendation
Compound interest 
Submax (2)
Motivation:
– Compound interest yields more interest than simple interest. 
– Compound interest allows Zinzi to earn interest on interest. 
Submax (2)
Max (4)
Breakdown of marks
Question 1 Marks
1.1 4
1.2 4
1.3 4
TOTAL 12
QUESTION 1
1.1 Multiple choice
1.1.1 D 
1.1.2 A 
1.1.3 B 
1.1.4 C 
1.1.5 B 
(5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 2
2.1 Investment decisions
– Return on Investment 
– Risk 
– Investment period
– Inflation rate 
– Taxation
– Liquidity 
Max (4 × 1) (4)
NOTE: Mark the first FOUR (4) investment decisions only.
2.2 Type of investment opportunities
2.2.1 Type of investment opportunity from the scenario
Mutual funds/Stokvels 
Submax (2)
Motivation:
The Unified African Group was recently established to provide members of the local community with
opportunities to contribute to a savings fund informally.
Submax (1)
Max (3)
BS Grade 12 TG.indb 151 2022/03/14 10:18:46

2.2.2 Risks associated with mutual funds/stokvels
– Members could be contributing to an illegal financial scheme and could lose all the money contributed.
– The possibility exist that a member could be unable to contribute his/her monthly savings.
– The investment is linked to low riskand money of the investors are relatively safe. 
– Any other relevant answer related to the risks associated with mutual funds/stokvels.
Max (4)
2.3 Distinction between ordinary shares and preference shares
ORDINARY SHARES PREFERENCE SHARES:
The shareholder is only entitled to receive a return on The shareholders of a certain type of preference
his investment  when the company makes a profit shares are entitled to dividend payment  regardless
and declares a dividend. of whether the company declares a dividend payment
or not.
A higher dividend is payable to the shareholder  if The shareholder will receive a fixed rate of return 
the profits are higher. regardless of the amount of the profit.
Should the company be liquidated, the shareholder Should the company be liquidated, the shareholder
will be paid only after  the preference shareholders will be paid before  the ordinary shareholders get
have been paid from the sale of the remaining paid from the sale of the remaining assets.
assets.
The shareholder receives standard shares  with no The shareholder receives special privileges  in terms
special privileges. of dividend payments.
The dividend payments to shareholders fluctuate The dividend payments to shareholders are fixed ,
from year to year , and in certain years no dividends and payments made depend on the type of
are paid. preference shares purchased.
The shareholder has the right to participate and vote The voting rights of the shareholder is limited 
 at the Annual General Meetings of the company. to issues affecting the rights of the preference
shareholders.
Any other relevant answer related to ordinary shares. Any other relevant answer related to preference
shares.

3. Award a maximum of FOUR (4) marks if the distinction is not clear/Mark either ordinary shares
and preference shares.
Max (8)
2.4 Rights of preference shareholders
– The shareholder is entitled to receive dividends irrespective of the profit levels of the company. 
– They only have voting rights at the AGM under particular circumstances/for certain resolutions. 
– The shareholder is entitled to receive dividend payments before ordinary shareholders.
– In the event of the company being declared bankrupt/insolvent they have a claim on the assets of the company
before ordinary shareholders.
– Full disclosure must be made to the shareholders by providing them with copies of all financial reports.
– The voting rights of the investor is limited to issues affecting the rights of the preference shareholders.
– Any other relevant answer related to rights of preference shareholders.
Max (6)
Breakdown of marks
Question 1 Marks
2.1 4
2.2.1 3
2.2.2 4
2.3 8
2.4 6
TOTAL 25
BS Grade 12 TG.indb 152 2022/03/14 10:18:47

QUESTION 3
3.1 Introduction
– The financial sector in South African is one of the more vibrant and sophisticated sectors in the world economy today. 
– JSE provides listed companies with the ability to acquire financial resources to start or expand business operations. 
– The choice of simple or compound interest influence the amount of interest that will be paid to the investor. 
– Fixed deposits are conservative forms of investment that have both a positive and negative impact. 
– Unit trusts are collections of investment options made up of shares in different companies. 
– Any other relevant introduction related to functions of the JSE/simple and compound interest/impact of unit trusts
and fixed deposits as the forms of investment/rights of ordinary shareholders.
Any (2 × 1) (2)
3.2 Functions of the JSE
– Gives opportunities to financial institutions such as insurance companies to invest their funds in shares. 
– Serves as a barometer/indicator of economic conditions in South Africa.
– Keeps investors informed on share prices by publishing the share prices daily.
– Acts as a link between investors and public companies.
– Shares are valued and assessed by experts.
– Small investors are invited to take part in the economy of the country through the buying/selling of shares.
– Venture capital market is made available on the open market.
– Orderly market for securities serves as a disciplined market for securities.
– Raises primary capital by encouraging new investments in listed companies
– Mobilises the funds of insurance companies and other institutions.
– Any other relevant answer related to the functions of the JSE.
Max (8)
3.3 Distinction between simple interest and compound interest
SIMPLE INTEREST COMPOUND INTEREST
Interest earned on the original amount only. Interest earned on original amount invested, as well
as interest earned in the preceding years that were
added to the original amount invested. 
The value of the original amount remains the same The value of the original amount increases as
for the duration of the investment. additional interest is added in subsequent years. 
The interest portion of the investment is accounted The interest portion of the investment is added to
for separately from the original amount of the the original investment, thus increasing the original
investment. investment.
The return on investment is lower than the return The return on investment is higher than the return
on investment of compound interest.  on investment of simple interest.
The total amount of interest earned is lower than The total amount of interest earned is higher than
the total amount of compound interest earned.  the total amount of simple interest earned.
Any other relevant answer related to simple interest. Any other relevant answer related to compound
interest.

3. Award a maximum of SIX (6) marks if the distinction is not clear/Mark either simple interest or
compound interest.
Max (12)
BS Grade 12 TG.indb 153 2022/03/14 10:18:47

3.4 Impact on forms of investment
Fixed deposits
– The investor is certain of the return on investment  because the interest rate is fixed for a predetermined period.
– The period of investment available to the investor ranges from short-term, medium term or long-term periods. 
– The investor doesn’t have access to his/her funds for the duration of the investment period, thus instilling a sense
of financial discipline. 
– The duration of the investment period is determined solely by the investor. 
– The return on investment of this type of investment is higher. 
– Investors earns a better return on investment than on an ordinary savings account. 
– The investor will be paid the original amount of the investment plus all interest earned during the
investment period. 
– Any other relevant answer related to the positives/advantages of fixed deposits.
AND/OR
– The investor doesn’t have access to any funds invested until the end of the investment period. 
– The return in investments may be lower than the general rate of inflation. 
– This type of investment generally provides the investors with a lower returns than other type of investments. 
– Any other relevant answer related to negatives/disadvantages of fixed deposit.
Submax (8)
Unit trust
– Unit trusts are funds of investors that are pooled together and managed by a fund manager on behalf of the
investors who buys shares on the JSE. 
– The fund manager chooses from a variety of share options that offer low risks to high risks investments. 
– The investments are managed according to predetermined rules and procedures,  making it a safe investment. 
– The amounts that may be invested each month varies from small amounts to high amounts. 
– Investment is easy for the investors, with options like online investment offered to investors. 
– Investors have free access to the funds and may convert it to cash in the event of an emergency. 
– Any other relevant answer related to the positives/advantages of unit trusts.
AND/OR
– Share prices as a rule are subject to fluctuations, which may increase the risk of this investment. 
– Growth of unit trust investments are dependent on the, established and well recognised companies in which
shares were bought, continue to grow/expand. 
– The funds of the unit trust are limited to contributions of members thereof and may not be increased by other
borrowings. 
– This investment option is not recommended to investors who wants to invest for a limited period of time. 
– This investment option is not suitable for investors who wants to evade risks. 
– Any other relevant answer related to the negatives/disadvantages of unit trusts.
Submax (8)
Max (16)
3.5 Rights of ordinary shareholders
– The shareholder is only entitled to receive a return on his investment in the event of the company making a profit
and declaring a dividend. 
– Higher dividend is payable to the shareholder if the profits are higher. 
– Attend the Annual General Meeting to learn about the company’s performance.
– The shareholder receives standard shares with no special privileges. 
– The dividends payments to shareholders fluctuates from year to year and in certain years no dividends are paid. 
– The shareholder has the right to participate and vote at the Annual General Meeting of the company. 
– Any other relevant answer related to the rights of ordinary shareholders.
Max (10)
BS Grade 12 TG.indb 154 2022/03/14 10:18:47

3.6 Conclusion
– Data obtained from the JSE allows government to make decision regarding the economy. 
– Compound interest earned allows investors to increase their interest earned exponentially. 
– Some investors decide to invest their money in more conservative forms of investment such as fixed deposits,
whereas other investors choose unit trusts as the risk is spread across various companies. 
– Ordinary shares can be quite lucrative as higher dividends are earned by shareholders when the company is
profitable. 
– Any other relevant conclusion related to functions of the JSE/simple and compound interest/impact of unit trusts and
fixed deposits as the forms of investment/rights of ordinary shareholders
Any (1 × 2) (2)
[40]
3.1 Introduction 2
3.2 Functions of the JSE 8
3.3 Distinction between simple interest and compound interest 12 Max
3.4 Impact of forms of investment 16 32
3.5 Rights of ordinary shareholders 10
3.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 155 2022/03/14 10:18:47

TOPIC 10 Investment: Insurance
Teaching tips:
• Show learners a video clip of insurance. • Use a table to explain the differences between insurable
• The video will consist of and non-insurable risks using practical examples.
– Basic types of insurance and terms associated • A clear distinction must be made between insurable
with insurance that we will be covered in this and non-insurable risks.
topic. • Focus on the word ‘risks’ not ‘assets’ so that learners
• Issues learners with questions based on the video do not confuse the insurable and non-insurable risks
that learners will have to answer. with the types of assets that should be insured.
• After watching the video, quiz learners on the • Use relevant examples and demonstrations when
questions they have answered. teaching the principles of insurance.
• Have a brief discussion on the content of the video. • Identify key words that will enable learners to
remember the explanation of each principle.
• Provide learners with an opportunity to answer
questions based on the video. • Make four columns using simple statements when
explaining each principle. Learners must be advised
to include examples of each insurance principle, as
this forms part of the expected answer.
• Ensure that learners have a clear understanding of
the meaning of under-insurance before addressing
the meaning of the average clause.
• Learners must be made aware that the average
clause applies to property or assets that are
underinsured, and it is used to calculate the
proportion of the loss that must be paid to the
insured when goods or assets are under-insured.
• Learners are expected to be able to calculate the
average clause using the correct formula, i.e., the
amount insured divided by the value of the property
multiplied by the damage.
• The reason for starting with the amount insured
should be explained, as this indicates the impact of
under-insurance.
• Learners must be reminded that the formula and
the workings are allocated part-marks and must be
clearly shown.
• It must be emphasised that the term ‘average clause’ • Consult the following past NSC Question Papers for
is applied when goods or assets are underinsured. Section B and C type questions:
• Focus on the importance and advantages of – May/June 2021 P2 Question 2.6 – scenario on
insurance on businesses rather than on individuals. insurance
• Terms such as ‘transfer of risks’ and ‘protect – Nov 2020 P2 Question 2.3 – calculation of insurance
businesses’ must be explained in the relevant – Nov 2019 Question 3.6 – scenario on average
context, with the emphasis being on how businesses clause
benefit from insuring their assets.
– Nov 2019 Question 8 – essay on insurance
• It is vital that learners be encouraged to write full
– Nov 2018 Question 6.4 – scenario on average
sentences when explaining the importance of insurance.
clause
• Learners should be careful that they do not explain
the advantages of insurance for individuals instead
scenario on average clause
of for businesses.
BS Grade 12 TG.indb 156 2022/03/14 10:18:47

QUESTION 1
1.1 Complete the sentence
1.1.1 average clause 
1.1.2 reinstatement
1.1.3 short-term
1.1.4 under-insured
1.1.5 excess
(5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 1
1.1 Insurance clause from the scenario
Average clause 
(2)
1.2 Calculation of average clause
Amount insured
× Amount of damages/loss 
Value of insured item
600 000
= × 100 000 
800 000
= 75 000  (4)
NOTE: 1 Award full marks (4) if the answer is correct and no workings are shown.
2. If the formula and workings were shown correctly but the final answer is wrong, award a
maximum of THREE (3) marks.
3. If the workings and the answer are incorrect, award a maximum of ONE mark for the formula.
Breakdown of marks
Question 1 Marks
1.1 2
1.2 4
TOTAL 6
Topic 10 Investment: Insurance 157
BS Grade 12 TG.indb 157 2022/03/14 10:18:47

QUESTION 1
1.1 Introduction
– Distinct differences exist between the concepts insurance and assurance. 
– The nature of the risk to the insured will determine whether the cover will relate to insurance or assurance. 
– Businesses are exposed to many risks during the course of their business operations. 
– To protect the business against these risks the business will pay the insurer a premium in return for taking over the
risk from the insured. 
– Businesses are required by law to take out compulsory insurance, for example UIF.
– The insured must however bear in mind that the insurer will take over only certain risks from the insured.
– Any other relevant introduction related to the advantages of insurance for business/distinction between insurance
and assurance/types of compulsory insurance/ benefits paid out by the UIF
Any (2 × 1) (2)
1.2 Advantages of insurance for businesses
– Transfers the risk from the business/insured to an insurance company/insurer. 
– Transfer of risk is subject to the terms and conditions of the insurance contract. 
– Protects businesses against dishonest employees. 
– Protects businesses against losses due to death of a debtor. 
– Protects the business against theft/loss of stock and/or damages caused by natural disasters such as floods and
storm damage. 
– Protects businesses from claims made by members of the public for damages that the business is responsible for. 
– Businesses will be compensated for insurable losses, for example, destruction of property through fire. 
– Businesses assets, for example, vehicles/equipment/buildings need to be insured against damage and/or theft. 
– Businesses are protected against the loss of earnings, for example, strikes by employees which result in losses
worth millions. 
– Life insurance can be taken on the life of partners in a partnership to prevent unexpected loss of capital. 
– Should the services of key personnel be lost due to accidents/death, the proceeds of an insurance policy can be paid
out to the business/beneficiaries. 
– Replacement costs for damaged machinery/equipment are very high, therefore insurance can reduce/cover
such costs. 
– Any other relevant answer related to the advantages of insurance for businesses.
Max (8)
1.3 Distinction between insurance and assurance
INSURANCE ASSURANCE
Based on the principle  of indemnity. Based on the principle  of security/certainty.
The insured transfers the cost of potential loss  to The insurer undertakes to pay an agreed sum of
the insurer at a premium. money  after a certain period has expired/on the
death of the insured person, whichever occurred
first.
It covers a specified event  that may occur. Specified event is a certainty,  but the time of the
event is uncertain.
Applicable to  short-term insurance. Applicable to  long-term insurance.
Examples: Property insurance/Cash in transit/Theft/ Examples: Life insurance/Endowment policy/
Burglary/ Fire Retirement annuities 
Any other relevant answer related to insurance. Any other relevant answer related to assurance.

3. Award a maximum of SIX (6) marks if the distinction is not clear/Mark either insurance
or assurance.
Max (12)
BS Grade 12 TG.indb 158 2022/03/14 10:18:47

1.4 Types of compulsory insurance
Road Accident Fund (RAF)/Road Accident Benefit Scheme (RABS)
– The RAF/RABS is responsible for providing appropriate cover to all road users within the borders of South Africa. 
– The object of the Fund is the payment of compensation in accordance with RAF/RABS Act for loss or damage
wrongfully caused by the driving of a motor vehicle. 
– The RAF/RABS provides a social security safety net to the country/economy by making available compulsory social
insurance cover to all users of South African roads. 
– The RAF/RABS indemnifies the wrongdoer from liability to any victim of a car accident. 
– Contributions to the RAF/RABS are done by way of a levy on fuel used for road transportation. 
– The cover extends to all members of society including, pedestrian, owners and drivers of motor vehicles, as well as
their passengers. 
– The social insurance cover, however, does not extend to drivers of motor vehicles that are found to be negligent. 
– In the event of an accident, the RAF/RABS pays the medical and related services costs required to restore accident
victims to health. 
– Accident victims/their families are compensated for loss of income as a result of the accident. 
– Compensation is also paid by RAF/RABS for pain and suffering/loss of amenities of life/ disability and disfigurement/
funeral costs to families in circumstances where the victim of the accident sustains fatal injuries. 
– The amount that the victim of an accident for loss of income may claim is limited by legislation. 
– Any other relevant answer related to the Road Accident Fund (RAF)/Road Accident Benefit Scheme (RABS).
Submax (8)
Compensation Fund/Compensation for Occupational Injuries and Diseases Act (COIDA)
– The Compensation for Occupational Injuries and Diseases Act covers occupational diseases /injuries sustained by
employees during the performance of their official duties. 
– COIDA makes provision for employees who sustain injuries/diseases incurred at work to be compensated. 
– All employers are compelled to register with the compensation fund so that employees may be compensated for
accidents/diseases sustained in the workplace. 
– Employers are required to report all accidents within 7 days and occupational diseases within 14 days to the
Compensation Commissioner. 
– The levy paid to the compensation fund is the responsibility of the employer. 
– No contributions are required from the employee towards the compensation fund. 
– Should an employee die as a result of a work-related accident/disease, his/her dependant(s) will receive
financial support. 
– Any other relevant answer related to the Compensation Fund/Compensation for Occupational Injuries and Diseases
Act (COIDA).
Submax (8)
Max (16)
1.5 Benefits paid out by UIF
Unemployment benefits
– If the employer terminates the service of an employee, the employee may apply to the Unemployment Insurance
Fund (UIF) for benefits. 
– The benefits are only available to unemployed employees who have been contributing to the UIF while they
were employed. 
– The unemployed employee may not claim for UIF benefits if he/she has resigned, been suspended or absconded
from work. 
– You may however claim for benefits from the UIF if the Commission for Conciliation, Mediation and Arbitration
(CCMA) considers your resignation as a constructive dismissal. 
– To qualify for benefits, unemployed employees you must register, with the Department of Employment & Labour as a
work seeker. 
– The unemployed employee must apply for the UIF benefits as soon as he/she become unemployed or within six
months of the termination of his/her employment. 
– Any other relevant answer related to benefits paid out by UIF.
Max (10)
BS Grade 12 TG.indb 159 2022/03/14 10:18:47

1.6 Conclusion
– The value of insurance for businesses and individuals are indispensable in the modern economy. 
– Organisations insure their possessions/assets and make provision for future events to ensure the sustainability of
their business. 
– Workers who qualify, can also claim maternity, illness, adoption and dependant benefits. 
– Contributions to be paid by employers to the compensation fund are determined by the Department of Labour. 
– The RAF/RABS is responsible for providing appropriate cover to all road users within the borders of South Africa. 
– Any other relevant conclusion related to the advantages of insurance for business/distinction between insurance and
assurance/types of compulsory insurance/ benefits paid out by the UIF.
Any (1 × 2) (2)
[40]
1.1 Introduction 2
1.2 Advantages of insurance for businesses 8
1.3 Distinction between insurance and assurance 12 Max
1.4 Types of compulsory insurance 16 32
1.5 Benefits paid out by UIF 10
1.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
Consolidation Learner’s Book page 256-257
QUESTION 1
1.1 Multiple choice
1.1.1 D 
1.1.2 B 
1.1.3 B 
1.1.4 C 
1.1.5 B 
(5 × 2) ( 10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 2
2.1 Types of benefits paid by UIF
– Unemployment benefits 
– Illness/Disability benefits 
– Maternity benefits 
BS Grade 12 TG.indb 160 2022/03/14 10:18:47

– Dependent benefits
– Adoption benefits 
NOTE: Mark the first FIVE (5) answers only.
Any (5 × 1) (5)
2.2 Distinction between insurance and assurance
INSURANCE ASSURANCE
Based on the principle of indemnity. Based on the principle of security/certainty.
The insured transfers the cost of potential loss to The insurer undertakes to pay an agreed sum of
the insurer at a premium. money after a certain period has expired/on the
death of the insured person, whichever occurred
first.
It covers a specified event that may occur. Specified event is a certainty, but the time of the
event is uncertain.
Applicable to short-term insurance. Applicable to long-term insurance.
Examples: Property insurance/ Cash in transit/Theft/ Examples: Life insurance/Endowment policy/
Burglary/ Fire Retirement annuities, 
Any other relevant answer related to insurance. Any other relevant answer related to assurance.

3. Award a maximum of FOUR (4) marks if the distinction is not clear/Mark either insurance
or assurance.
Max (8)
2.3 Compulsory Insurance
2.3.1 Types of compulsory insurance from the scenario
Road Accident Fund (RAF) / Road Accident Benefit Scheme (RABS) (2)
Motivation:
Peter, an employee of EC, was recently involved in a car accidents and was hospitalised for four weeks. (1)
NOTE: 1 Award marks for the type of compulsory insurance even if the quote is incomplete.
2. Do not award marks for the motivation if the type of compulsory insurance was
Max (3)
2.3.2 Other types of compulsory insurance
Unemployment Insurance Fund (UIF) 
– The Unemployment Insurance Fund (UIF) was established to assist employees with financial aid should they
become unemployed due to termination of the employment contract by the employer. 
– The UIF provided financial assistance for a limited period to the dependants of a deceased employee who
was registered with the UIF.
– The employer is required to register their employees with the UIF and to pay the levy of 2% of the
employees remuneration to SARS on a monthly basis. 
– The employee contributes 1% of his remuneration towards the UIF. 
– The employer contributes an additional 1% of the employees remuneration towards the UIF fund. 
– The additional contributions of 1% by the employer ensures that the payment to the employee’s increases,
should he/she become unemployed. 
– Employees must work at least 24 hours a month before they are required to contribute towards the
UIF fund. 
– Unemployed employees must register with the Department of Labour and all valid claims will be processed
by the UIF. 
– Any other relevant answer related to UIF as a compulsory insurance.
Submax (3)
BS Grade 12 TG.indb 161 2022/03/14 10:18:47

Compensation for Occupational Injuries and Diseases Act (COIDA) 
– The Compensation for Occupational Injuries and Diseases Act covers occupational diseases /injuries
sustained by employees during the performance of their official duties. 
– COIDA makes provision for employees who sustain injuries/diseases incurred at work to be compensated. 
– All employers are compelled to register with the compensation fund so that employees may be
compensated for accidents/diseases sustained in the workplace. 
– Employers are required to report all accidents within 7 days and occupational diseases within 14 days to
the Compensation Commissioner. 
– The levy paid to the compensation fund is the responsibility of the employer.
– No contributions are required from the employee towards the compensation fund.
– Should an employee die as a result of a work-related accident/disease, his/her dependent(s) will receive
financial support. 
– Any other relevant answer related to the Compensation Fund/Compensation for Occupational Injuries and
Diseases Act (COIDA) as a compulsory insurance.
Submax (3)
Max (6)
2.4 Distinction between over-insurance and under-insurance
OVER-INSURANCE UNDER-INSURANCE
The insured insures assets/possessions for more than The insured insures assets/possessions for less than
the market value. the market value.
The insurer will apply the principle of reinstatement The insurer will apply the average clause should the
to compensate for losses. insured submit a claim for losses/damages.
Compensation by the insurer will not be more than The insured will be compensated partly/proportionally
the market value of the items damaged/loss. for damages/losses incurred.
The insurer will replace/repair the damages/loss The insurer will pay the insured cash for damages or
incurred by the insured. losses incurred.
Any other relevant answer related to over-insurance. Any other relevant answer related to under-
insurance.

3. Award a maximum of FOUR (4) marks if the distinction is not clear/Mark either over-insurance or
under-insurance.
Max (8)
Breakdown of marks
Question 2 Marks
2.1 5
2.2 8
2.3.1 3
2.3.2 6
2.4 8
TOTAL 30
QUESTION 3
3.1 Introduction
– The nature of the risk to the insured will determine whether the cover will relate to insurance or assurance. 
– Businesses are exposed to many risks during the course of their business operations. 
– To protect the business against these risks the business will pay the insurer a premium in return for taking over the
risk from the insured. 
– The insured must however bear in mind that the insurer will take over only certain risks from the insured. 
– Due to the nature of certain risks, insurance companies are not willing to insure all risks. 
BS Grade 12 TG.indb 162 2022/03/14 10:18:47

– Insurance considers some risk riskier than other risks. 
– The RAF/RABS provides insurance cover for all road users in South Africa. 
– COIDA makes provision for workers who are injured or dies while performing official duties. 
– The UIF is a safety net for workers who become unemployed due to specified events. 
– Any other relevant introduction related to the distinction between insurable risk and non-insurable risks/meaning of
compulsory insurance/principles of insurance/benefits of insurance for businesses.
Any (2 × 1) (2)
3.2 Distinction between insurable risks and non-insurable risk
INSURABLE RISK NON-INSURABLE RISK
Refers to risks that insurance companies are Refers to risks that insurance companies are not
prepared to take over from individuals/businesses.  prepared to take over from individuals/businesses. 
Should the insured suffer losses/damages the These risks are regarded as too high by the insurance
insurer will reimburse the insured for losses/damages companies. 
incurred. 
The premiums of all the insured are added together/ The possibility exist that the premiums paid by all the
invested, allowing the insurer to compensate the insured will be less than the compensation paid to
insured for the insurable risk.  the insured for losses/damages incurred. 
Example of insurable risks: Theft/Fidelity insurance/ Examples of non-insurable risks: Losses/Damages
Burglary/ Money in transit/ Fire/ incurred as a result of a war/Fluctuations in fashion
and trends/ Losses/Damages incurred as a result of
illegal marketing activities/New inventions created by
the improvement in technology. 
Any other relevant answer related to insurable risks. Any other relevant answer related to non-insurable risks.

3. Award a maximum of SIX (6) marks if the distinction is not clear/Mark either insurable risks or
non-insurable risks.
Max (12)
3.3 Meaning of compulsory insurance
– Refers to insurance that individuals/business  are compelled to take out. 
– Individual/Business are legally obliged to insure against certain risks  that may or may not occur. 
– The types of risks are regulated  by the state 
– Individuals/Businesses are required to pay levies into a centralised fund  and damages/losses incurred are paid
from the fund 
– Examples: Unemployment Insurance Fund [UIF]/Road accident Fund [RAF]/Compensation for Occupational Injuries
and Diseases Act [COIDA]. 
– Any other relevant answer related to the meaning of compulsory insurance.
Max (8)
3.4 Principles of insurance
Indemnification /Indemnity
– According to this principle of insurance the insured pays a premium to the insurer and the insurer in return
agrees to pay the assured an amount of money for losses/damage incurred as stipulated in an agreement between
the two parties. 
– The insured will be compensated should a specified event occur that leads to losses/damages. 
– The insured must provide evidence to the insurer that a specified event occurred before any payments are made to
the insured. 
– The amount of money that the insured will receive will be limited to actual loss/damage incurred, despite the fact
that the agreement may contain a higher amount. 
– The general principle is that the insured may not profit from insurance,  but has the right to be place in a similar
position that he/she was in prior to the loss/damage. 
– Any other relevant answer related to indemnification/indemnity as a principle of insurance.
Submax (6)
BS Grade 12 TG.indb 163 2022/03/14 10:18:47

Utmost good faith
– The insured has the responsibility of providing the insurer with all the necessary information that may affect the
scope of the risk of the insurer. 
– The insured must be truthful with the information requested when concluding an insurance agreement. 
– The insurer must be truthful regarding any terms/conditions relating to the insurance contract. 
– The insured must provide accurate information when submitting any claims as a result of a loss/damages. 
– The insurer must be honest when assessing the validity of any claim submitted by the insured. 
– Any other relevant answer related to utmost good faith as a principle of insurance.
Submax (6)
Max (12)
3.5 Benefits of insurance for businesses
– The insured do not have to bear the risk of losses/damages to assets/possessions. 
– Taking over the risk by the insurer from the insured is linked to certain terms and conditions stipulated in the
insurance contract. 
– The businesses are protected from damages/losses incurred due to natural disasters. 
– The businesses are protected from damages/losses incurred due to theft/burglary of assets/possessions. 
– The businesses will be compensated for insurable losses of assets/possessions caused by fire. 
– Businesses are protected against the loss of earnings, due to strikes by employees.
– Businesses are protected against deceitful/dishonest employees. 
– A businessman may insure the life of a business partner and receive compensation on his/her death to prevent the
loss of capital. 
– Businesses may insure the lives of debtors to protect the businesses against losses due to death of a debtor. 
– Any other relevant answer related to importance of insurance.
Max (14)
3.6 Conclusion
– It is important that certain principles must be adhered to by both parties to ensure the validity of the contract. 
– Breach of the principles could invalidate any claims that may arise should a loss/damages/event occurs. 
– RAF pays for injuries as a result of road accidents, caused by workers while on duty thus saving businesses money. 
– COIDA cover workers who incur injuries or die while performing their duties, protecting business from claims
by dependants. 
– UIF pays workers a monthly stipend when they are retrenched thereby protecting by businesses from claims.
– Any other relevant conclusion related to the distinction between insurable risk and non-insurable risks/meaning of
compulsory insurance/principles of insurance/benefits of insurance for businesses.
Any (1 × 2) (2)
[40]
3.1 Introduction 2
3.2 Distinction between insurable risks and non-insurable risks 12
3.3 Meaning of compulsory insurance 8 Max
3.4 Principles of insurance 12 32
3.5 Benefits of insurance for businesses 14
3.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 164 2022/03/14 10:18:47

TOPIC 11 Team performance
assessment and conflict
management
Teaching tips:
• Refer learners to content covered in Grade 10: • Provide alternative words for norming, performing and
– Concept of team work adjourning.
– Advantages of team work for the business • Practical examples and role play must be used when
teaching the stages of team development.
– Factors that influence team relationships
• Place emphasis on activities that take place in each stage
– Criteria for successful team performance
of team development.
• Refer learners to content covered in Grade 11:
• A clear distinction should be made between the
– Stages of team development meaning of a ‘conflict’ and a ‘grievance’.
– Team dynamics theories • This will enable learners to understand the differences
• Compile a baseline assessment to determine content between the conflict resolution steps and the grievance
gaps. procedure.
• Revise & consolidate content identified in analysis of • The former refers to two people, while the latter refers
the baseline assessment. to one person.
• Unpack the glossary of concepts with learners. • They will then realise that the team dynamic theories
enable businesses to allocate task effectively to
employees, based on their personalities and roles.
• Learners must be taught how to differentiate • Consult the following past NSC Question Papers for
between norming and performing stages, as they Section B and C type questions:
usually swop the answers for these stages. – May/June 2021 P2 Question 6 – essay on team
• It should also be noted that team members must performance and conflict management
first complete their tasks before dissolving during the – Nov 2020 P2 Question 3.2 – scenario on stages of
adjourning stage. team development
• Learners must understand that conflict resolution – Nov 2019 Question 9 – essay on team
techniques deal with two employees who have performance and conflict management
different opinions or beliefs while grievance procedure
– June 2019 Question 4.2 – identify causes of
focuses on the aggrieved employee.
conflict
• Conflict resolution techniques can be regarded as
– June 2019 Question 6.6 – identify stages of team
informal process since no minutes of the meeting are
development
kept during the meeting.
– Nov 2018 Question 4.3 – scenario on stages of
• Learners must be discouraged from writing negative
team development
statements on how to deal with difficult employees
and personalities. – Nov 2018 Question 4.6 – scenario on difficult
personalities
– May/June 2018 Question 4.5 – scenario on stages
of team development
– Feb/March 2018 Question 9 – essay on conflict
management
Topic 11 Team performance assessment and conflict management 165
BS Grade 12 TG.indb 165 2022/03/14 10:18:47

QUESTION 1
1.1 Criteria for succesful team performance
1.1.1 Shared values/Mutual Trust and Support 
1.1.2 Co-operation/Collaboration 
1.1.3 Communication 
1.1.4 Interpersonal attitude and behaviour 
(4 × 2) (8)
1.2 Features of criteria for successful team performance
Shared values/Mutual trust and support
– Team members respect/trust one another  despite differences that may exist among the team. 
– The experiences/knowledge/skills of other team members  are acknowledged/respected. 
– The timeous contribution of every team member  enables the team to meet its deadlines. 
– Any other relevant answer related to shared values/mutual trust and support as a criterion for successful team
performance.
Submax (2)
Co-operation/Collaboration
– Each team member knows exactly what they are expected to do  because the goals are clear/realistic. 
– Team members are willing to work with one another  in pursuit of the goals of the team. 
– Team members are willing to work with supervisors  in pursuit of the organisation’s goals. 
– Decision-making is a collaborative effort  between all team members and supervisors. 
– Any other relevant answer related to co-operation/collaboration as a criterion for successful team performance.
Submax (2)
Communication
– The role/s of every team member is set out  in the procedures that the team must adhere to. 
– Good communication between team members  may result in quick decisions. 
– Quality feedback improves the morale  of the team. 
– Frank discussions amongst team members contribute  to viable solutions being explored. 
– Any other relevant answer related to communication as a criterion for successful team performance.
Submax (2)
Interpersonal attitudes and behaviour
– Members have a positive attitude of support  and motivation towards each other. 
– Good/Sound interpersonal relationships will ensure  job satisfaction/ increase productivity of the team. 
– Team members work together passionately  to achieve a common goal. 
– The positive contributions of team members are acknowledged by the team leader,  which increases the
confidence level of team members. 
– Any other relevant answer related to interpersonal attitudes and behaviour as a criterion for successful
team performance.
NOTE: Do not award marks for responses that were quoted in question 1.1.
Submax (2)
Max (8)
Breakdown of marks
Question 1 Marks
1.1 8
1.2 8
TOTAL 16
BS Grade 12 TG.indb 166 2022/03/14 10:18:47

QUESTION 1
1.1
Stages of team development
1.1.1 Stage of development from the scenario
Performing/Working as a team towards a goal  (2)
Motivation:
Team members are aware of strategies and aims of the team.  (1)
NOTE: 1. Award marks for the stage of team development even if the quote is incomplete.
2. Do not award marks for the motivation if the stage of team development was incorrectly identified.
Max (3)
1.1.2 Other stages of team development
Forming 
– This is the first stage of team development and team members are introduced to each other. 
– Team members observe each other’s behaviour and are polite to each other. 
– In this stage team members shows mutual respect and they feel comfortable. 
– This stage is characterised by focussing on the routine and administrative details of the goals of the team. 
– Any other relevant answer related to the forming stage.
Submax (3)
Storming 
– Conflict occurs amongst team member after the forming stage is concluded. 
– There may be power struggles for the position of team leader. 
– Team members with different ideas exchange these ideas, which leads to conflict. 
– Team members opposes the ideas of other team members that does not correspond with their ideas. 
– Power struggles occur within the group, and the dominant team members takes charge of the team. 
– At certain times the storming stage are often resolved quickly, and if it’s not resolved the team won’t move
further than this stage. 
– Any other relevant answer related to the storming stage.
Submax (3)
Norming/Reconciliation/Settling 
– The conflict during the storming stage must be resolved as soon as possible. 
– This will allow the team to move to the norming stage. 
– During this stage, team members compromise their ideas and accept that they need to work in harmony
with one another. 
– Team members come to an agreement and reach consensus. 
– The duties and responsibilities of all the team members are set out and agreed to. 
– The processes involved in achieving the goals are adhered to and team members appreciate the
contributions of fellow team members. 
– Individual team members collectively work towards the goals of the team. 
– Any conflict that happens during this stage is addressed in a professional/collegial manner. 
– Any other relevant answer related to the norming/settling/reconciliation stage.
Submax (3)
Adjourning/Mourning 
– The focus is on the completion of the task/ending the project. 
– Some team members adjust poorly to the team breaking up, because they’ll find it difficult to work on their
own again. 
– All tasks must be completed before the team finally breaks up and individual members go their separate ways. 
– Any other relevant answer related to the adjourning/mourning stage
Submax (3)
Max (6)
NOTE: 1. Mark the first TWO (2) stages only.
2. Do not award marks for responses provided in QUESTION 1.1.1.
BS Grade 12 TG.indb 167 2022/03/14 10:18:47

1.2 Cause of conflict
– Employees from different backgrounds do not always agree on the path to be followed in pursuit of the
organisation’s goals.  
– Not adhering to the rules/procedures of the organisation may lead to conflict is the guilty parties are addressed on
this matter.  
– Lack of cooperation could delay the production process and cause frustration amongst colleagues.  
– The different personalities of employees come to the fore when employees engage with each.  
– Lack of recognition by management of workers who performs additional duties/consistently perform at high levels. 
– Unrealistic deadlines may increase the stress levels of certain employees.  
– Unfair workloads may cause some employees to feel marginalised/resentful.  
– Lack of clear communication may cause uncertainty amongst employees.  
– Any other relevant answers related to causes of conflict
Max (6)
Breakdown of marks
Question 1 Marks
1.1.1 3
1.1.2 6
1.2 6
TOTAL 15
QUESTION 1
1.1 Introduction
– Businesses must guard against unpleasant working conditions that may lead to grievances and unnecessary conflict. 
– Distinct differences exist between the terms “grievance” and “conflict”. 
– Conflict refers to disagreements between two or more team members. 
– It is unavoidable that where ever individuals come together a certain amount of conflict will arise. 
– Businesses should take necessary steps to address conflict in the workplace. 
– Effective strategies must be in place to deal with difficult employees in the workplace. 
– Individuals all come with their own pre-conceived ideas/cultural backgrounds/past experiences which may be in
conflict with that of others within the group. 
– Any other relevant introduction related to grievance and conflict/causes of conflict in the workplace/conflict
resolution steps/different ways in which businesses can deal with difficult employees in the workplace.
Any ( 2 × 1) (2)
1.2 Differences between grievance and conflict
GRIEVANCE CONFLICT
Refers to a complaint by an employee against the Refers to a disagreement between two or more
employer or a fellow employee.  employees workplace. 
Grievance is lodged against a work-related issue.  Conflict arises due to a difference of opinions
expressed by employees. 
Examples: Discrimination/Unfair treatment/Poor Examples: Lack of trust/Lack of communication/
working conditions.  Personality clashes/Different values. 
Any other relevant answer related to grievance. Any other relevant answer related to conflict

3. Award a maximum of FOUR (4) marks if the distinction is not clear/Mark either grievance
or conflict only.
Max (8)
BS Grade 12 TG.indb 168 2022/03/14 10:18:47

1.3 Causes of conflict in the workplace
– Employees from different backgrounds do not always agree on the path to be followed in pursuit of the
organisation’s goals. 
– Not adhering to the rules/procedures of the organisation may lead to conflict is the guilty parties are addressed on
this matter. 
– Lack of cooperation could delay the production process and cause frustration amongst colleagues. 
– The different personalities of employees come to the fore when employees engage with each. 
– Lack of recognition by management of workers who performs additional duties/consistently perform at high levels. 
– Unrealistic deadlines may increase the stress levels of certain employees. 
– Unfair workloads may cause some employees to feel marginalised/resentful. 
– Lack of clear communication may cause uncertainty amongst employees. 
– Any other relevant answers related to causes of conflict.
Max (14)
1.4 Conflict resolution steps/procedures
– Acknowledge that conflict exist between the employees. 
– Determine the cause of the conflict that must be resolved. 
– Invite conflicting employees to state their views separately. 
– Arrange a time and place for conflicting employees to meet. 
– Invite conflicting employees to a joint meeting. 
– Explain the purpose of the meeting to the conflicting employees. 
– Allow each employee to express his/her views. 
– Encourage conflicting employees to accept that their views are different. 
– Evaluate the views expressed and make an objective decision. 
– Any other relevant answers related to conflict resolution steps/procedures.
Max (12)
1.5 Ways in which businesses can deal with difficult employees in the workplace
– Arrange a private meeting with the difficult employee, to avoid being distracted whilst dealing with the issues. 
– State clearly the purpose of the meeting to ease any fear that the employee may have. 
– Be specific about the behaviour of the employee that’s deemed to be unacceptable. 
– Provide the difficult employee with an opportunity to explain his side of the unacceptable behaviour. 
– Determine a deadline by which the behaviour of the difficult employee must improve. 
– A conversation must be held with the difficult employee regarding the deadline and the monitoring of progress of
the behaviour prior to the deadline.
– Provide the difficult employee with guidelines for improvement of his/her behaviour.
– Assist the difficult employee about being realistic about changes in his behaviour. 
– Any other relevant answers related to ways in which businesses can deal with difficult employees in the workplace.
Max (12)
1.6 Conclusion
– Understanding the differences between a grievance and conflict will assist businesses in addressing
each appropriately.
– Dealing with conflict immediate will improve the relationship between the conflicting the employees/increase
productivity levels of conflicting employees. 
– Following the conflict resolution steps will ensure an amicable resolution of the conflict. 
– Dealing with difficult employees immediately will prevent them from demotivating other employees. 
– Any other relevant conclusion related to grievance and conflict/causes of conflict in the workplace/conflict resolution
steps/different ways in which businesses can deal with difficult employees in the workplace.
– Add break down of mark allocation to the essay question provided in attachment 1.
Any ( 1 × 2) (2)
[40]
BS Grade 12 TG.indb 169 2022/03/14 10:18:47

1.1 Introduction 2
1.2 Differences between grievance and conflict 8
1.3 Causes of conflict in the workplace 14
Max
1.4 Conflict resolution steps /procedures 12 32
1.5 Ways in which businesses can deal with difficult employees in
12
the workplace
1.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
QUESTION 1
1.1 Multiple Choice
1.1.1 B 
1.1.2 D 
1.1.3 C 
1.1.4 C 
1.1.5 D 
(5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 2
2.1 Causes of conflict
– Differences in background 
– Lack of recognition 
– Ignoring procedures/rules
– Unfair workloads
– Lack of co-operation
– Unrealistic deadlines
– Personality differences 
– Lack of proper communication 
– Any other relevant answer related to causes of conflict in the workplace.
Any (4 × 1) (4)
BS Grade 12 TG.indb 170 2022/03/14 10:18:47

2.2 Distinction between grievance and conflict
GRIEVANCE CONFLICT
Refers to a complaint by an employee against the Refers to a disagreement between two or more
employer or a fellow employee.  employees workplace. 
Grievance is lodged against a work-related issue.  Conflict arises due to a difference of opinions 
expressed by employees.
Examples: Discrimination/Unfair treatment/Poor Examples: Lack of trust/Lack of communication/
working conditions.  Personality clashes/Different values. 
Any other relevant answer related to grievance. Any other relevant answer related to conflict.

3. Award a maximum of TWO (2) marks if the distinction is not clear/Mark either grievance or
conflict only.
Max (4)
2.3 Difficult personalities
2.3.1 Types of difficult personalities from the scenario.
TYPE OF DIFFICULT PERSONALITIES STRATEGIES

1 Quiet personality  Mr. Moodley uses open-ended questions to get meaningful
responses from Tandiswa in team meetings. 
2 Expert personality  Mr. Moodley remind Gaynor that he values her inputs,
but that he’ll also consider other alternatives before
making decisions. 
NOTE: 1. Award marks for the types of difficult personalities even if the quote is incomplete.
2. Do not award marks for the motivation types of difficult personalities were incorrectly identified.
Max (6)
2.3.2 Dealing with difficult personalities
Complainer
– Listen to the complaints but don’t acknowledge them by nodding your head. 
– Interrupt the complainer after a while and proceed with strategies to deal with the issues raised. 
– Any other relevant answer related to the complainer personality.
Submax (4)
Over-agree
– Be firm with the employee and don’t allow him/her to let them make promises that they cannot keep. 
– Monitor the progress of duties assigned to the employee. 
– Any other relevant answer related to the over-agree personality.
Submax (4)
Max (8)
2.4 Handling conflict in the workplace/conflict resolution techniques
– Acknowledge that conflict exist. 
– Determine the cause of the conflict. 
– Invite conflicting employees to state their views separately. 
– Arrange a time and place for conflicting employees to meet. 
– Invite conflicting employees to a joint meeting. 
– Explain the purpose of the meeting to the conflicting employees. 
– Allow each employee to express his/her views. 
– Encourage conflicting employees to accept that their views are different. 
BS Grade 12 TG.indb 171 2022/03/14 10:18:48

– Evaluate the views expressed and make an objective decision. 
– Any other relevant answers related to handling of conflict in the workplace.
Max (8)
Breakdown of marks
Question 2 Marks
2.1 4
2.2 4
2.3.1 6
2.3.2 8
2.4 8
TOTAL 30
QUESTION 3
3.1 Introduction
– Successful teams are often built around individuals whose joint contribution enables the team to be successful/
achieve its goals. 
– Developing a successful team involves a process of going through different stages. 
– Correct processes must be followed in dealing with grievances in the workplace. 
– Difficult employees should be dealt with using relevant strategies to avoid unnecessary conflict. 
– Any other relevant introduction related to characteristics of successful team performance/ stages of team
development/ correct procedures to deal with grievances in the workplace/ ways in which businesses can deal with
difficult employees in the workplace.
Any (2 × 1) (2)
3.2 Characteristics of successful team performance
– Successful teams share a common goal as team members are part of the process of setting goals for the group. 
– There is a climate of respect/trust and honesty. 
– Share a set of team values and implement group decisions. 
– Successful teams have sound intra-team relations. 
– Teams value the contributions of individual members and reach consensus on differences. 
– Team members enjoy open communication and deal with items of conflict immediately. 
– Teams are accountable and members know the time frame for achieving their goals. 
– Teams pay attention to the needs of the individual team members.
– Any other relevant answer related to characteristics of successful team performance.
Max (10)
3.3 Stages of team development
Forming 
– This is the first stage of team development  and team members are introduced to each other. 
– Team members observe each other’s behaviour  and are polite to each other. 
– In this stage team members shows mutual respect  and they feel comfortable. 
– This stage is characterised by focussing on the routine  and administrative details of the goals of the team. 
Submax (4)
Storming 
– Conflict occurs amongst team members after  the forming stage is concluded. 
– There may be power struggles  for the position of team leader. 
– Team members with different ideas exchange  these ideas, which leads to conflict. 
– Team members opposes the ideas of other team members  that does not correspond with their ideas. 
– Power struggles occur within the group,  and the dominant team members takes charge of the team. 
– At certain times the storming stage are often resolved quickly,  and if it’s not resolved the team won’t move
further than this stage. 
Submax (4)
BS Grade 12 TG.indb 172 2022/03/14 10:18:48

Norming/settling/reconciliation 
– It is important that the conflict gets resolved as soon as possible,  to allow the team to move to the
norming stage. 
– Team members come to an agreement and reach consensus.
– Team members compromise their own ideas  and accept that they need to work in harmony with other
team members. 
– The duties and responsibilities  of all the team members are clearly set out and agreed to
– The processes involved in achieving the goals are adhered to  and team members appreciate the contributions of
fellow team members. 
– Individual team members collectively work towards  the goals of the team 
– Any conflict that happens during this stage is addressed  in a professional/collegial manner
– Any other relevant answer related to the norming/settling/reconciliation stage.
Submax (4)
Performing/Working as a team towards a goal 
– Team members are aware of strategies  and aims of the team.
– The leader trusts the team and avoids  interfering in the operations of the team. 
– Processes and structures are in place  to ensure the smooth execution of the job. 
– Leaders delegate  and oversee the processes and procedures. 
– All team members demonstrate competence/are able to work  on their own and provide valuable input in
decision making. 
– Any other relevant answer related to the performing stage.
Submax (4)
– The focus is on the completion of the task/ending the project. 
– Some team members adjust poorly to the team breaking up, because they’ll find it difficult to work on their own
again. 
– All tasks must be completed before the team finally breaks up and individual members go their separate ways. 
– Any other relevant answer related to the adjourning/mourning stage.
NOTE: Mark the first FOUR (4) stages of development only.
Submax (4)
Max (16)
3.4 Correct procedures to deal with grievances in the workplace
– The complainant must verbally report the grievanceto his/her supervisor. 
– The supervisor must resolve the grievance within 3 – 5 days. 
– If the supervisor be unable to resolve the grievance,  the complainant may take the grievance to the manager of
the supervisor. 
– The grievance forwarded to the manager of the supervisor must be in writing. 
– The manager of the supervisor provides the complainant with a written replyin response to the written grievance. 
– The manager must invite all parties to the grievance to a meeting. 
– A record of the meeting must be recorded in the minutes thereof and decisions made must be recorded on the
formal grievance form. 
– Should the employee not be satisfied with the outcome of the meeting, he/she could refer the matter to the
highest level of management. 
– Top management should arrange a meeting with all relevant parties concerned. 
– Minutes of this meeting should be recorded and the outcome must be recorded on the formal grievance form. 
– Should the employee still not be satisfied, he/she may refer the matter to the CCMA who will make a final decision
on the matter. 
– The matter can be referred to Labour Court on appeal if the employee is not satisfied with the decision taken by
the CCMA. 
– Any other relevant answer related to correct procedures to deal with grievances in the workplace.
Max (10)
BS Grade 12 TG.indb 173 2022/03/14 10:18:48

3.5 Dealing with difficult employees in the workplace
– Determine a deadline by which the behaviour of the difficult employee must improve. 
the behaviour prior to the deadline. 
– Provide the difficult employee with guidelines for improvement of his/her behaviour. 
– Assist the difficult employee about being realistic about changes in his behaviour. 
– Any other relevant answer related to dealing with difficult employees in the workplace.
Max (10)
3.6 Conclusion
– Successful team have certain quality traits that sets the apart from others and allows the team to achieve the
objectives of the organisation. 
– The ideas of the individuals must be merged in order to develop a common goal and enhance the performance of
the team. 
– Any other relevant conclusion related to characteristics of successful team performance/ stages of team
development/ correct procedures to deal with grievances in the workplace/ ways in which businesses can deal with
difficult employees in the workplace.
Any (1 × 2) (2)
[40]
3.1 Introduction 2
3.2 Characteristics of successful team performance 10
3.3 Stages of team development 16 Max
3.4 Correct procedure to deal with grievances in the workplace 10 32
3.5 Dealing with difficult employees in the workplace 10
3.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 174 2022/03/14 10:18:48

TOPIC 12 Human rights, inclusivity
and environmental issues
Teaching tips:
• This topic will focus on human rights, inclusivity and • The social rights of employees must be explained
environmental issues in the workplace. within a business context as these rights are aimed
• Human rights are enshrined in the Constitution of at taking care of the wellbeing of the employees.
South Africa. • Make use of newspaper articles on businesses that
• Refers learners to the clauses in the constitution that promote social rights in the workplace to enhance
relates to human rights. understanding.
• Have a class discussion on human rights. • Give the examples of social rights in the workplace
• Business must promote inclusivity. before explaining ways in which businesses can deal
• Businesses must ensure that they employ people of with these rights in the workplace.
different races, gender, ages, culture, religion and • It should be noted that these recommendations are
social backgrounds. embedded in the examples of social rights, e.g. the
• Businesses have a responsibility to protect the right to protection means to register workers with
environment for future generations. UIF to provide adequate protection in the event of
• They must ensure that their actions do not exploit or unemployment or illness.
endanger natural resources. • The strategy of using four columns to indicate the
four types of employee rights in the workplace,
namely, human, economic, social and cultural rights
is effective in addressing this topic.
• Commence environmental issues by addressing
the responsibilities of employers in protecting the
workplace environment before proceeding to the
roles of the health and safety representatives in
protecting the workplace environment.
• Expose learners to various scenarios relating to
diversity issues and guide them on how to respond
to questions that are based on these scenarios.
• In providing regular feedback, learners must be
exposed to the marking principles applied to such
scenarios.
• Learners should be made aware that the economic • Consult the following past NSC Question Papers for
rights of employees focus on aspects that deal with Section B and C type questions:
fair labour practices. – Nov 2020 P 2 Question 6 – Essay on human
• Learners must be advised that the health and safety rights, inclusivity & environmental issues
representatives serve as ombudsmen for their – Nov 2019 Question 4.3 – scenario on diversity
members; they do not provide safety measures but issues
they ensure that employees are provided with safety. – May/June 2018 Question 4.3 – identify diversity
• It should be emphasised that ways in which issues
businesses can protect the environment and human – Feb/March 2018 Question 9 – essay on diversity
health in the workplace includes measures that can
be taken to minimise environmental pollution and
human health in the workplace. This topic should not
be confused with the responsibilities of employers
or the role of health and safety representatives in
protecting the workplace environment.
• The latter focuses on adherence to safety measures in
the workplace in terms of working with equipment.
Topic 12 Human rights, inclusivity and environmental issues 175
BS Grade 12 TG.indb 175 2022/03/14 10:18:48

QUESTION 1
1.1 Economic rights of employees in the workplace:
– Freedom from forced labour. 
– The right to accept or choose work. 
– Fair wages and equal pay for equal work. 
– The right to leisure and reasonable limitation of working hours. 
– Safe and healthy working conditions. 
– Join/Form trade unions. 
– Right to participate in a legal strike. 
– Any other relevant answer related to economic rights of employees in the workplace.
Any (4 × 2) (8)
1.2.1 Human rights of workers
HUMAN RIGHT MOTIVATIONS
1. Equity Bono does not offer Fatima and Fabio the same
salary scale as they both perform well and have
the same experience. 
2. Freedom of speech and expression Some of JL’s employees are afraid to raise their
opinions as they may face discrimination in the
workplace. 
3. Privacy Bono shared the HIV status of one of his
employees with his junior manager. 
4. Respect/dignity Hank was hired as a truck driver but he was
instructed to remove sewage from leaking pipes. 
5. Information JL did not inform their employees of their roles
in the CSI projects that will be done for the
community. 
NOTE: 1 Award marks for the human rights even if the quotes are incomplete.
2 Do not award marks for the motivation if the human rights were incorrectly identified.
Max (15)
1.3 Implication of equality, respect and dignity on businesses
– Employees must be treated equally,  regardless of their race, colour, age, gender, disability, etc. 
– Equal access to opportunities, positions and resources must be available to all workers. 
– Legislation with regard to equal opportunities and human rights in the workplace,  must be implemented by
employers and employees. 
– Businesses should develop equity programmes which promote strategies to ensure that all employees are treated
equally regardless of status, rank or power. 
– The mission statement of the business should include  values of equality and respect. 
– Businesses should include issues such as diversity, discrimination and harassment in their training, information or
business policies. 
– Incidents of discrimination must be reported and employers should respond swiftly and fairly to this issue in
the workplace. 
– Employers must ensure that the workplace environment is safe, fair and free from embarrassment.
– Employers must give orders or tasks respectfully and if it is appropriate, allow the employees to have a say in the
manner in which the task should be performed. 
– Workers should be treated with respect and dignity by recognising work well done. 
– Any other relevant answer related to the implication of equity, respect and dignity on businesses.
Max (8)
BS Grade 12 TG.indb 176 2022/03/14 10:18:48

1.4 Ways businesses could promote social rights of employees in the workplace
– The business must adhere to the right of workers to have access to clean water and social security in the
work place. 
– Workers have the right to be respected for their religion and beliefs. 
– Businesses must provide opportunities for skills training or basic education because workers have the right to basic
education and they must also encourage workers to participate in skills training. 
– The business must register workers with UIF to provide adequate protection in the event of unemployment
or illness. 
– The business can encourage employees to participate in special events, for example, World Aids day. 
– They can provide health care services by establishing site clinics to give employees access to basic
medical examinations. 
– Any other relevant answer related to ways in which businesses could promote social rights in the workplace.
Max (6)
Breakdown of marks
Question 1 Marks
1.1 8
1.2.1 15
1.3 8
1.4 6
TOTAL 37
QUESTION 1
1.1 Meaning of diversity in the workplace
– Diversity means people are different in terms  of race/age/culture/religion/ etc. 
– Businesses employ people from different  cultural backgrounds. 
– Any other relevant answer related to the meaning of diversity in the workplace.
Max (4)
1.2 Diversity issues from given statements
1.2.1 Gender
1.2.2 Culture/religion
1.2.3 Age
1.2.4 Disability
(8)
1.3 Benefits of diversity in the workplace
– A diverse workforce improves the ability of a business to solve problems, be more innovate and cultivate
diverse markets. 
– When employees value each other’s diversity, they learn to connect and communicate across lines of difference. 
– A diverse workforce can improves morale and motivation of workers in the business. 
– When people feel respected, accepted and understood,  they demonstrate greater loyalty towards the business. 
– More ideas and inputs from different perspectives of a diverse workforce can give businesses a competitive
advantage, as they can render better services. 
– When the workers respect their diversity and accept that it makes good business sense,  it improves profitability of
the business. 
– When a business ensure that its policies and practices includes diversity, it will empower employees to perform at
their full potential. 
– Investors and other stakeholders increasingly evaluate businesses on how they manage diversity in the workplace. 
– Employees from different backgrounds and indigenous knowledge can bring different perspectives to the business. 
– A debate or brainstorming with a diversified workforce can stimulates new or improved ways of getting
things done. 
BS Grade 12 TG.indb 177 2022/03/14 10:18:48

– A diverse workforce of employees representing various groups will be able to recognise customer needs and
satisfy consumers. 
– Diversity in the business are more likely to contribute to a good public image and attract more customers. 
– Any other relevant answer related to the benefits of diversity in the workplace.
Max (8)
1.4 Ways in which businesses can deal with poverty as a diversity issue in the workplace
– The business should consider people from different socio-economic backgrounds and status with new
employments.
– Previously disadvantaged individuals must also have a chance to be educated by incorporating Adult Basic
Education and Training (ABET) into training programmes of the business. 
– Training will help retrenched employees to deal with their new reality. 
– The business must reward employees for services well-rendered and provide for their basic needs. 
– Businesses must ensure that the prices of products are affordable for the identified consumer market. 
– Businesses must sponsor learnerships for unemployed people or use grants received from SETAs to train more
unemployed people from local communities. 
– Some unemployed people from local communities must be trained as part of a business’s CSI projects. 
– They should offer subsidised meals or canteen facilities on the premises for their employees. 
– Free uniforms or personal protective clothing should be supplied to all employees to ensure their safety in the
workplace. 
– Any other relevant answer related to ways in which businesses can deal with poverty as a diversity issue in the
workplace.
Max (8)
Breakdown of marks
Question 1 Marks
1.1 4
1.2 8
1.3 8
1.4 8
TOTAL 28
QUESTION 1
1.1 Introduction
– Business operations may have a negative impact on the environment if there are no preventative measures
put in place.
– Health and Safety Representatives are elected by co-workers to act on their behalf in solving health and safety
issues in the workplace. 
– Health and safety representatives act as ‘watch dogs” in the workplace to ensure that all the safety requirements
are in place. 
– Employers as well as employees must take responsibility for health and safety in the workplace. 
– Any other relevant introduction related to the responsibilities of employers and employees in promoting human
health /roles of health and safety representatives/strategies businesses may use to protect the environment and
human health.
Any (2 × 1) (2)
1.2 Responsibilities of employers in promoting human health and safety in the workplace
– They must provide and maintain safe equipment that is necessary to perform the work. 
– Employers must keep the systems in place to ensure that there will be no harmful impact on the health and safety
of workers. 
– They must provide personal protective clothing to workers and also reduce or remove dangers in the workplace. 
BS Grade 12 TG.indb 178 2022/03/14 10:18:48

– Employers must carefully monitor production, processing, storage, transportation of materials or equipment to
ensure that the workers’ health are not damaged by hazards. 
– Employers must know where potential dangers might be and take measures to eliminate or limit the harm. 
– Workers must be informed or instructed and supervised to limit potential dangers to them
– They must ensure that workers make use of equipment only under the supervision of a designated trained
worker. 
– Comply with safety laws, for example, Health and Safety Work Act, 1974 which seek to promote a healthy
working environment.
– Any other relevant answer related to the responsibilities of employers in promoting human health and safety
in the workplace.
Max (12)
1.3 Roles of health and safety representatives in protecting the workplace
– They have to ensure that protective clothing is provided and available to all workers and that the workers are
wearing it all the time. 
– They must identify potential dangers in the workplace.
– To ensure the health and safety of workers, they must initiate, promote, maintain and review safety measures in
the business. 
– It is their duty to liaise with management to check and monitor the effectiveness of health and safety measures. 
– They must ensure that the workers receive all the needed equipment to perform their work and that it is
maintained regularly.
– They must ensure that the business give the necessary safety training to employees to avoid potential dangers. 
– They must ensure that dangerous equipment is used under the supervision of trained and qualified workers. 
– They must monitor production, processing, storage, transportation of material and equipment to ensure that
workers’ health and safety is not endangered by hazards resulting from it. 
– Workers can lodge complaints with them and they must work together with the employer to investigate any
accidents or these complaints from the workers concerning health and safety in the workplace. 
– They must ensure that employers comply with COIDA for example, report accidents at the workplace. 
– Any other relevant answer related to the roles of health and safety representatives.
Max (12)
1.4 Responsibilities of workers/employees in promoting human health and safety in the workplace
– Workers must be aware that they should take care of their own health and safety in the workplace. 
– Workers must always comply with the rules and procedures from the business. 
– If there are unsafe or unhealthy working conditions they must report it to relevant authorities or management. 
– Accidents must be reported immediately to the relevant authorities and the prescribed paper work must be done. 
– Workers must take reasonable care of their own safety and comply with the rules and restrictions of the workplace. 
– If they are aware of any illness that may affect their ability to work, they must inform the employer there of. 
– Any other relevant answer related to the responsibility of workers to promote health and safety in the workplace.
Max (12)
1.5 Strategies that businesses may use to protect the environment and human health
– Businesses must not generated profit at the expense of the environment, but they must adhere to the relevant laws
and regulations. 
– The business should be aware of their impact on pollution and other environmental issues to minimise its impact for
example, safe disposal of waste and dumping of toxic waste, etc. 
– The business must also take steps to become involved in environmental awareness programmes. 
– The business must alter its production techniques in favour of cleaner and greener technologies to protect the
environment. 
– According to the social rights of workers the business must test water in the workplace to ensure that it is safe for
human consumption. 
– The business must look after natural resources and promote nature conservation. 
– The business must have a policy to minimise pollution and actively re-use, recycle and reduce waste. 
– The business can reduce consumption of goods and services which are environmentally unfriendly for example,
invest in appropriate technology like clean solar or wind power. 
– They must register or engage with recognised institutions or bodies that promote green peace and green energy. 
BS Grade 12 TG.indb 179 2022/03/14 10:18:48

– The physical working conditions in the workplace should always be worker friendly, safe and promote
occupational health. 
– The business must evaluate the physical working conditions, to improve human health for example, adequate
lighting and ventilation should be available and functional. 
– To reduce accidents the machines must be serviced and well maintained regularly. 
– The business must educate people about hygiene issues for example, washing of hands. 
– To improve the health of their workers, the business must encourage employees to do regular health checks for
example, blood pressure and temperature checks. 
– Any other relevant answer related to strategies businesses may use to protect human health and the environment.
Max (10)
1.6 Conclusion
– Businesses must ensure that the health and safety representatives have the necessary training and resources to fulfil
their duties. 
– Businesses must control all physical, chemical and biological factors in the workplace. 
– Any other relevant answer related to the conclusion related to the responsibilities of employers and employees in
promoting human health /roles of health and safety representatives/strategies businesses may use to protect the
environment and human health.
Any (1 × 2) (2)
[40]
1.1 Introduction 2
1.2 Responsibilities of employers to protect human health and safety 12
1.3 Role of health and safety representatives in protecting human
12
health and safety Max
1.4 Responsibilities of workers/employees to protect human health and 32
12
safety
1.5 Strategies to protect the environment and human health 10
1.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 180 2022/03/14 10:18:48

QUESTION 1
1.1 Matching columns
1.1.1 G
1.1.2 F
1.1.3 A
1.1.4 H
1.1.5 B
(5 × 2) (10)
1.2 Social rights in the workplace
– The right to healthcare, food and clean water. 
– The right to social security in the work place. 
– The right to be respected for their religion and beliefs. 
– Everyone have the right to basic education
– Any other relevant answer related to the social rights of workers.
Any (4 × 1) (4)
1.3 Responsibilities of employers in promoting human health and safety in the workplace
– They must provide and maintain safe equipment that is necessary to perform the work. 
– Employers must keep the systems in place to ensure that there will be no harmful impact on the health and safety
of workers. 
– They must provide personal protective clothing to workers and also reduce or remove dangers in the workplace. 
– Employers must carefully monitor production, processing, storage, transportation of materials or equipment to
ensure that the workers’ health are not damaged by hazards. 
– Employers must know where potential dangers might be and take measures to eliminate or limit the harm. 
– Workers must be informed or instructed and supervised to limit potential dangers to them. 
– Businesses must ensure that workers make use of equipment only under the supervision of a designated trained
worker. 
– Any other relevant answer related to the responsibility of employers in promoting human health and safety in
the workplace.
Max (6)
Breakdown of marks
Question 1 Marks
1.1 10
1.2 4
1.3 6
TOTAL 20
QUESTION 2
2.1.1 Roles of health and safety representatives from the scenario
– They will be responsible for ensuring that dangerous equipment is used under the supervision of trained and
qualified workers. 
– They must also ensure that the business provides the necessary safety training to employees. 
(2)
2.1.2 Other roles of health and safety representatives
– They have to ensure that protective clothing is provided and available to all workers and that the workers are
wearing it all the time. 
– They must identify potential dangers in the workplace
– To ensure the health and safety of workers, they must initiate, promote, maintain and review safety measures in
the business. 
– It is their duty to liaise with management to check and monitor the effectiveness of health and safety measures. 
BS Grade 12 TG.indb 181 2022/03/14 10:18:48

– They must ensure that the workers receive all the needed equipment to perform their work and that it is
maintained regularly. 
– They must monitor production, processing, storage, transportation of material and equipment to ensure that
workers’ health and safety is not endangered by hazards resulting from it. 
– Workers can lodge complaints with them and they must work together with the employer to investigate any
accidents or these complaints from the workers concerning health and safety in the workplace. 
– They must ensure that employers comply with COIDA for example, report accidents at the workplace. 
NOTE: No marks must be awarded for answers provided in QUESTION 2.1.1.
Max (4)
2.2 Ways in which businesses could deal with human rights in the workplace
2.2.1 Ways to deals with freedom of speech
– Businesses should allow open communication channels between management and employees for example,
they can implement a box for grievances from the employees. 
– They should give employees a platform to raise their grievances without any victimisation by implementing
workplace representatives in bigger companies. 
– Everybody has the right to express their opinion and should not be punished or discriminated against for
voicing their opinion. 
– Any other relevant answer related to ways how to deal with freedom of speech.
Max (4)
2.2.2 Ways to deal with safety, security and protection of life in the workplace
– According to law, employees must work in a safe working environment free from hazardous areas
or products. 
– Businesses should provide workers with protective clothing for example, gloves and footwear. 
– Consumers have the right to be protected against hidden flaws and dangers in products they buy. 
– Consumers have the right to an environment that is safe for them for example, a smoke free area
in a restaurant. 
– Businesses must comply with the regulations such as the OHSA/COIDA, etc. regarding the safety and health
of their employees. 
– Employers should take precautionary measures to ensure that employees and their belongings are safe in
the workplace. 
– Any other relevant answer related to ways to deal with safety, security and protection of life in
the workplace.
Max (4)
Breakdown of marks
Question 2 Marks
2.1.1 2
2.1.2 4
2.2.1 4
2.2.2 4
TOTAL 14
QUESTION 3
3.1 Introduction
– Human rights is the basic rights that everyone has because they are a human beings irrespective of their gender/
race/nationality or any other status
– Economic rights form part of human rights that must be observed in the workplace. 
– Businesses must include a variety of people from different race, gender, ages, culture, religion and social background
in the workforce of the business. 
– Any other relevant introduction related to the economic rights of employees in the workplace/the implications of
equality, respect, and dignity in the workplace/benefits of diversity in the workplace/ways in which businesses can
deal with gender and age as diversity issues.
Any (2 × 1) (2)
BS Grade 12 TG.indb 182 2022/03/14 10:18:48

3.2 Economic rights of employees in the workplace
– Workers has the right to freedom from forced labour. 
– They have the right to decide freely to accept or choose work. 
– Businesses must give equal pay for equal work to their employees. 
– Workers have the right to leisure and reasonable limitation of working hours. 
– Businesses must take care that working conditions are safe and healthy. 
– According the LRA act workers has the right to join and form trade unions, and participate in legal strikes. 
– Any other relevant answer related to the economic rights of employees in the workplace.
Max (10)
3.3 Implications of equality, respect and dignity in the workplace
– Employees must be treated equally,  regardless of their race, colour, age, gender, disability. 
– Access to opportunities, positions and resources must be equal for all workers. 
– Legislation with regard to equal opportunities and human rights in the workplace,  must be implemented by
employers and employees. 
– Businesses should develop equity programmes which promote strategies to ensure that all employees are treated
equally regardless of status, rank or power. 
– The mission statement of the business should include values of equality and respect. 
– Businesses should include issues such as diversity, discrimination and harassment in their training, information or
business policies. 
– Incidents of discrimination must be reported and employers should respond swiftly and fairly to this issue in
the workplace. 
– Employers must ensure that the workplace environment is safe, fair and free from embarrassment. 
– Employers must give orders or tasks respectfully and if it is appropriate, allow the employees to have a say in the
manner in which the task should be performed. 
– Workers should be treated with respect and dignity by recognising work well done. 
– Any other relevant answer related to the implications of equality, respect and dignity in the workplace.
Max (12)
3.4 Benefits of diversity in the workplace
– A diverse workforce improves the ability of a business to solve problems, be more innovative and cultivate diverse
markets. 
– When employees value each other’s diversity, they learn to connect and communicate across lines of difference. 
– A diverse workforce can improve morale and motivation of workers in the business. 
– When people feel respected, accepted and understood,  they demonstrate greater loyalty towards the business. 
– More ideas and inputs from different perspectives of a diverse workforce can give businesses a competitive
advantage, as they can render better services. 
– When the workers respect their diversity and accept that it makes good business sense,  it improves profitability of
the business. 
– When a business ensure that its policies and practices includes diversity, it will empower employees to perform at
his/her full potential. 
– Investors and other stakeholders increasingly evaluate businesses on how they manage diversity in the workplace. 
– Employees from different backgrounds and indigenous knowledge can bring different perspectives to the business. 
– A debate or brainstorming with a diversified workforce can stimulates new or improved ways of getting
things done. 
– A diverse workforce of employees representing various groups will be able to recognise customer needs and
satisfy consumers. 
– Diversity in the business are more likely to contribute to a good public image and attract more customers. 
– Any other relevant answer related to the benefits of diversity on the workplace.
Max (12)
BS Grade 12 TG.indb 183 2022/03/14 10:18:48

3.5 Ways to deal with diversity issues
Gender
– The business should offer equal employment opportunities to males and females. 
– Both men and women should have the opportunity to be promoted to managerial positions. 
– According to the EEA Act, women should have equal opportunities to apply for jobs. 
– The business must set targets for gender equity in the business as well as the implementation thereof. 
– New appointments should be based on skills and ability despite of the gender op the person. 
– The business should introduce affirmative action by ensuring that male and female employees are remunerated fairly
and equally. 
– Any other relevant answer related to ways how to deal with gender in the workplace.
Submax (6)
Age
– The business must do promotions based on a specific set of skills rather than link it to age. 
– The BCEA prohibit the employment of aged 15 or younger. 
– The normal ages of permanent workers should vary from 18 to 65 to include all age groups. 
– If a person is the most suitable candidate a business may employ a person who is older than the normal
retirement age. 
– Older employees can be used as mentors to help young employees to develop their potential. 
– The business must expect from young employees to respect and learn from older employees. 
– Everyone in the business must be taught to be sensitive to different perspectives of various age groups. 
– Any other relevant answer related to ways how to deal with gender in the workplace.
Submax (6)
Max (12)
3.6 Conclusion
– Businesses must respect human rights of their workers in the workplace and include policies on how to deal with it
in the workplace. 
– Businesses can benefit immensely from diversity in the workplace and must make sure to include a variety of people
in the workplace. 
– Businesses must have strategies in place on how to handle diversity issues in the workplace.
– Any other relevant conclusion related to the economic rights of employees in the workplace/the implications of
equality, respect, and dignity in the workplace/benefits of diversity in the workplace/ways in which businesses can
deal with gender and age as diversity issues.
Any (1 × 2) (2)
[40]
3.1 Introduction 2
3.2 Economic rights of employees 10
3.3 Implications of equalities, respect and dignity 12 Max
3.4 Benefits of diversity in the workplace 12 32
3.5 Ways to deal with diversity issues 12
3.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 184 2022/03/14 10:18:48

TOPIC 13 Social responsibility and
corporate citizenship: CSR & CSI
Teaching tips:
• Refer learners to content covered in Grade 10: • A clear distinction must be made between the CSI
– Meaning of socio-economic issues focus areas and CSR programmes.
– Reasons why socio-economic issues pose a • It should be stressed that CSR programmes inform
challenge to businesses CSI focus areas which are aimed at rural, employee
– Impact of socio-economic issues on business and community development.
operations • Learners must be encouraged to conduct research
• Refer learners to content covered in Grade 11: on businesses CSI focus areas so that they can gain
– Impact of socio-economic issues on businesses insight in this topic.
and productivity
– Strategies to deal with socio-economic issues
gaps.
• Businesses are expected to measure the impact of • Consult the following past NSC Question Papers for
CSI projects on their operations. Section B and C:
• Therefore, learners must be able to explain how – Nov 2020 P2 Question 3.4 – scenario on triple
these projects benefit businesses instead of giving bottom line
examples of CSI projects – Nov 2019 Question 4.6 – scenario on CSI
• Learners must know that CSI projects are aimed at – June 2019 Question 4.6 – scenario on CSI
increasing the standard of living of communities – Nov 2018 Question 9 – essay on CSR & CSI
rather than the wellbeing of employees in the
workplace.
• Learners must also know that the content of this
topic is not the same as the provisions of the BCEA.
• It should be noted that businesses are not compelled
to promote the wellbeing of employees as compared
to the provisions of the BCEA that requires business
to comply with this Act.
Topic 13 Social responsibility and corporate citizenship: CSR & CSI 185
BS Grade 12 TG.indb 185 2022/03/14 10:18:48

QUESTION 1
1.1 Three elements of triple bottom line
– Social/People 
– Environment/Planet
– Economic/Profit
(3 × 1) (3)
1.2 Meaning of social responsibility
– It is the responsibility of every citizen individual and organisation to contribute towards  the well-being of the
community and the environment in which they live. 
– Organisations have the responsibility to balance their operations  between economic development, wellbeing of
the community and the looking after the environment. 
– This responsibility can take the form of passively avoiding any actions that could harm the environment and/or
– Actively taking steps to benefit society with their initiatives. 
– Any other relevant answer related to the meaning of social responsibility.
Max (6)
Breakdown of marks
Question 1 Marks
1.1 3
1.2 6
TOTAL 9
QUESTION 1
1.1
Socio-economic issues
1.1.1 Socio-economic issues from the scenario
– Poverty 
– Unemployment 
– HIV/AIDS 
NOTE: Mark the first THREE (3) only.
(3 × 1) (3)
1.1.2 Ways in which the business can deal with each socio-economic issue
Poverty
– Donate money and/or food parcels to local NGO. 
– Invest in infrastructure and housing programmes in the local area. 
– Offering volunteering programs to identify an attract the best potential employees. 
– Support poverty alleviation programmes that are offered by the government. 
– Invest in a young starting businesses who can be a business competitor, buyer or supplier. 
– Any other relevant answer related to strategies to deal with poverty as a socio-economic issues.
Submax (2)
Unemployment
– Provide skills development of the community through learnerships programmes. 
– Offer bursaries to the community and employees to improve the level of education. 
– Create jobs for members of the community in the business. 
– Conduct entrepreneurial programmes that can promote self employment. 
– Support existing small businesses to grow, with time and money, to create more employment
opportunities. 
BS Grade 12 TG.indb 186 2022/03/14 10:18:48

– Use members of the community for implementing CSI projects in the community. 
– Any other relevant answer related to strategies to deal with unemployment as a socio-economic issue.
Submax (2)
HIV/AIDS
– Participate in the existing HIV/Aids prevention programmes implemented in the community. 
– Train/Hire counsellors to provide infected and affected persons/employees with counselling. 
– Develop counselling programmes for infected employees and their relatives. 
– Conduct workshops on HIV/Aids programmes and support HIV/Aids campaigns. 
– Roll out anti-retroviral (ARV) treatment programmes (ART) for the infected employees.
– Encourage employees to join HIV/Aids support groups. 
– Develop and implement strategies to deal with stigma and discrimination. 
– Support non-governmental organisational and community-based organisations on HIV/Aids initiatives. 
– Any other relevant answer related to strategies to deal with HIV/AIDS as a socio-economic issue.
NOTE: The strategy in (1.1.2) must link with the socio-economic issue in (1.1.1)
Submax (2)
Max (6)
1.2 Ways in which businesses can improve the well-being of their employees
– Pay fair wages/salaries to the workers based on the nature of their work and the prevailing economic conditions in
the market. 
– Pay fair bonuses, based on business earnings, as acknowledgement for hard work and commitment. 
– Provide recreational facilities for employees and encourage them to stay fit and healthy. 
– Working conditions should include safety, medical and canteen facilities.  
– Start a nutritional programme so that employees can enjoy one meal per day to keep them in a healthy condition. 
– Provide transport for employees who work unusually long hours. 
– Conduct team-building sessions to improve employees’ morale. 
– Any other relevant answer related to the ways businesses can contribute to the well-being of their employees.
Max (8)
Breakdown of marks
Question 1 Marks
1.1.1 3
1.1.2 6
1.2 8
TOTAL 17
QUESTION 1
1.1 Introduction
– Businesses are corporate citizens and therefore have a responsibility towards society.
– Corporate Social Responsibility is the way in which the business manage its processes, including time and effort, to
affect all the stakeholders of the business positively.
– CSR programmes and CSI projects should be relevant to the needs of the community. 
– Businesses should not only focus on profits but also on the wellbeing of the community in which they operate. 
– The triple bottom line suggests that business should commit to measuring their social and environmental impact in
addition to their financial performance rather than solely focusing on generating profit. 
– Any other relevant introduction related to the purpose of CSI/distinction between CSR and CSI/link between social
responsibility and the triple bottom line/positive impact of CSR on the community.
Any (2 × 1) (2)
BS Grade 12 TG.indb 187 2022/03/14 10:18:48

1.2 Purpose of CSI
– It aims at contributing towards sustainable development of its immediate communities. 
– Law and government requires business to make CSI contributions. 
– CSI projects reveals a positive business’s attitude towards the local community and help the community to develop. 
– The CSI projects are long-term investment and must be sustainable. 
– CSI is relevant in South Africa because there are a great need to uplift communities all over the country. 
– Any other relevant answer related to the purpose of CSI.
Max (8)
1.3 Distinction between CSR and CSI
CORPORATE SOCIAL RESPONSIBILITY CORPORATE SOCIAL INVESTMENT
The intention is to change business practices.  Actively committing money and resources to uplift
the community. 
Focus is on increasing image and profits Focus is on the upliftment of community  without
return on investment. 
Ensure that all internal CSI policies/ practices include Ensure that CSI projects are relevant to the needs of
stakeholders’ interests/environmental issues.  communities. 
Often intended as a marketing initiative.  Intended to benefit and uplift communities through
social development. 
Projects are usually linked to the Business.  Projects are external to the business and have a
strong developmental approach. 
Any other relevant answer related to corporate social Any other relevant answer related to corporate social
responsibility. investment.
Sub max (8) Sub max (8)
Max (16)
2 The differences do not have to link, but they must be clear.
3 If the difference is not clear, award only EIGHT (8) marks./Mark either corporate social
responsibility or corporate social investment.
1.4 Link between social responsibility and the triple bottom line
People/Social 
– Businesses/organisations should not harm or exploit  people, their employees, customers, or the community. 
– Businesses should engage and invest in sustainable community programmes or projects  that will benefit and/or
uplift communities. 
– Businesses should contribute to the well-being  of all their stakeholders. 
– Any other relevant answer related to people/social as a component of the triple bottom line.
Component 2
Explanation 2
Submax 4
Profit/Economic 
– The triple bottom line means that businesses should not only focus on their profit and charge high prices  but
should also invest in CSI projects. 
– Businesses should not make a profit  at the expense of their community. 
– Any other relevant answer related to profit/economic as a component of the triple bottom line.
Component 2
Explanation 2
Submax 4
Planet/Environment 
– Businesses should not exhaust resources or harm the environment  for production or to gain profit
for themselves. 
– They should support  energy-efficient or eco-friendly products and production methods. 
BS Grade 12 TG.indb 188 2022/03/14 10:18:48

– They must take part in recycling or re-use of waste , for example, making use of recycled material for packaging or
in products. 
– Any other relevant answer related to planet/environment as a component of the triple bottom line.
Component 2
Explanation 2
Submax 4
Max (12)
1.5 Positive impact of CSR for communities
– The welfare of the community will improve because the issue of the community will be attended to. 
– Skills development take place and it will increase the possibility of appointments of members of the community. 
– Developmental programmes which the business implements, will improves entrepreneurial skills of communities. 
– The provision of bursaries increase the level of education and enable the community to apply for jobs. 
– Better educational and recreational facilities are established in poor communities. 
– Any other relevant answer related to the positive impact of CSR on communities.
Max (10)
1.6 Conclusion
– Corporate Social Responsibility is an obligation required by law and beneficiary to both business and society. 
– Businesses use CSI programmes to comply with laws and ethical business practices. 
– Businesses must always consider the impact of their CSI projects on their own stakeholders as well as
the community.
– Businesses have the responsibility to balance their operations and look after the environment. 
– Any other relevant conclusion related to related to the purpose of CSI/distinction between CSR and CSI/link between
social responsibility and the triple bottom line/positive impact of CSR on the community.
Any (1 × 2) (2)
(40)
1.1 Introduction 2
1.2 Purpose of CSI 8
1.3 Distinction between CSR and CSI 16 Max
1.4 Link between social responsibility and the triple bottom line 12 32
1.5 Positive impact of CSR for communities 10
1.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 189 2022/03/14 10:18:48

QUESTION 1
1.1 Multiple choice
1.1.1 B
1.1.2 C
(4 × 1) (4)
1.2 CSI focus areas
– Community
– Rural development
– Employees
– Environment
– Any other relevant answer related to CSI focus areas.
Any (4 × 1) (4)
Breakdown of marks
Question 1 Marks
1.1 4
1.2 4
TOTAL 8
QUESTION 2
2.1 Corporate Social Investment (CSI)
2.1.1 Advantages of CSI for Amile Traders as a business
– “The business has enjoyed more support from the community.” 
– “They also managed to attract experienced employees.” 
NOTE: 1 Mark the first TWO (2) only.
(2 × 1) (2)
2.1.2 Disadvantages of CSI on Amile Traders
– CSR programmes could be taken for granted by the community and customers may not buy the
business’s products. 
– It is difficult for small and medium enterprises to implement CSR programmes. 
– It is expected from businesses to draw up detailed reports which can be time consuming. 
– Social involvement is funded from business profits which could have been used to the benefit of
customers and reduce prices. 
– CSR activities distract business focus from its core business functions. 
– Businesses find it difficult to adhere to legislation governing CSR. 
– Any other relevant answer related to the disadvantages of CSI on businesses.
Max (6)
Breakdown of marks
Question 2 Marks
2.1.1 2
2.1.2 6
TOTAL 8
BS Grade 12 TG.indb 190 2022/03/14 10:18:49

TOPIC 14 Presentation and data
responses
Teaching tips:
• Refer learners to content covered in Grade 10: • Explain the relationship between factors that must be
– support materials considered before and during a presentation.
– factors that must be covered when preparing a • Learners must be taught to identify the relationship
verbal presentation between these factors to realise the logic that a
presenter must first prepare a presentation before
– factors that must be considered when designing a
presenting it.
presentation
• All relevant types of visual aids and their impact on
– audio-visual aids
businesses must be taught and discussed at length.
• Refer learners to content covered in Grade 11:
• Smartboards and projectors can be used to demonstrate
– verbal and non-verbal presentation this difference, as well as the impact of a PowerPoint
– types of visual aids presentation.
– factors that a presenter must consider when • The meaning of the types of visual aids must be clearly
preparing a presentation understood before the impact of this topic is addressed,
– critically analysing a business report in lessons.
– recommend areas for improvement of a business • Pictures of different types of visual aids used in
report lessons, will be more effective in providing a deeper
understanding of this topic.
– handling feedback
• Use role-play to highlight the factors that must be
considered while presenting and handling feedback
Grade 10 & 11. • in a non-aggressive and professional manner.
• Compile a baseline assessment to determine
content gaps.
• Emphasize that the use of visual aids serves • Consult the following past NSC Question Papers for
to enhance effective presentation of business Section B and C type questions:
information. – May/June 2021 P2 Question 5 – Essay on
• Learners must be provided with explanations so that presentation
they do not confuse a PowerPoint presentation with – Nov 2020 P2 Question 4.4 – scenario on
interactive smartboards. presentation
• Learners must be aware that handling feedback after – Nov 2019 Question 8 – essay on presentation
a presentation would require a presenter to have
– June 2019 Question 8 – essay on presentation
good communication and listening skills.
– Nov 2018 Question 3.7 – scenario on visual aids
presentation
– Feb/March 2018 Question 3.1 – identify type of
visual aids
Topic 14 Presentation and data responses 191
BS Grade 12 TG.indb 191 2022/03/14 10:18:49

QUESTION 1
1.1 Factors to be considered before, during and after a presentation
1.1.1 before 
1.1.2 before 
1.1.3 during 
1.1.4 after 
1.1.5 before 
1.1.6 during 
1.1.7 after 
1.1.8 before 
1.1.9 after 
1.1.10 during 
(10 × 1) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 1
ACROSS DOWN
2 Flipchart üü 1 Visual aids üü
5 Illustration üü 3 Slideshows üü
7 Interactive whiteboard üü 4 Written report üü
10 Videoconferencing üü 6 Multimedia üü
14 Bar graph üü 8 Line graph üü
15 Pie chart üü 9 Feedback üü
16 Verbal presentation üü 11 Data response üü
17 Handouts üü 12 Tables üü
18 Presentation üü 13 Histogram üü
(18 × 2) (36)
Breakdown of marks
Question 1 Marks
36
TOTAL 36
BS Grade 12 TG.indb 192 2022/03/14 10:18:49

QUESTION 1
1.1 Examples of non-verbal presentations
– Tables 
– Graphs/bar graph/line graph/histogram/pie chart 
– Diagrams
– Illustrations/Pictures/Photographs/Scenarios
– Written business reports
– Flip charts
– Handouts
– Slideshows/Transparencies
– Any other relevant answer related to examples of non-verbal presentation
NOTE: Mark the first FIVE (5) examples of non-verbal presentations only.
Any (5 × 1) (5)
1.2
Visual aids
1.2.1 Type of visual aid from the scenario
Data projector/PowerPoint  (2)
Motivation:
ZSI requested Thembi, the sales manager, to use slides that were projected on a screen during
her presentation. (1)
NOTE: Do not award marks for the type of visual aid if the motivation was incorrectly identified.
Max (3)
1.2.2 Impact of data projector/PowerPoint
– The presentation may be enhanced by the use of visuals/graphics that a data projector/PowerPoint
provides. 
– Visuals/audio aids like sound/video clips could easily be included in the PowerPoint presentation. 
– The stakeholders/audience interest in the presentation could be increased  if the slides are easy to read
and with limited text. 
– The interest of the stakeholders/audience may be attracted  by the use of various multimedia in the slides. 
– Attracting the attention/keeping the attention of the stakeholders/audience may be achieved  through the
use of eye-catching backgrounds/font/colours on the slides. 
– The slides used must complement the presentation/summarise the objectives  of the presentation to the
stakeholders/audience. 
– Any other relevant answer related to the positives/advantages of a data projector/PowerPoint.
AND/OR
– The presenter may not know  how to operate the Data Projector/PowerPoint slides. 
– The stakeholders/audience may become annoyed with the interruptions caused the inability of the
presenter to operate the Data Projector/PowerPoint slides. 
– The use of data projector/PowerPoint is not recommended  if the stakeholders/audience has visual or
sound impediments. 
– The stakeholders/audience may be distracted  by the presenter simple repeating what is displayed on
the slides. 
– The implementation of load shedding may prevent the presenter from using the Data Projector/
PowerPoint slides during his/her presentation. 
– Any other relevant answer related to the negatives/disadvantages of a data projector/PowerPoint.
Max (6)
BS Grade 12 TG.indb 193 2022/03/14 10:18:49

1.3 Areas of improvement in the next presentation
– Identify the objectives not achieved and revise the objectives if necessary. 
– Infuse humour, at the appropriate time in your presentation. 
– Learn from constructive criticism to improve your next presentation. 
– Ensure that the information/data at your disposal is updated regularly/is accurate. 
– Consider the length of the presentation and adjust the presentation to match the allocated time of
the presentation. 
– Reflect whether the use of visual aids enhanced the value of the presentation. 
– Reflect on the time/length of the presentation and add/remove content if necessary. 
– Reconsider the logical flow of the of the content presented and determine the effectiveness thereof in its
current sequence. 
– Consider the quality of your feedback to questions from the audience/stakeholders. 
– Any other relevant answer related to areas of improvement in the next presentation.
Max (6)
Breakdown of marks
Question 1 Marks
1.1 5
1.2.1 3
1.2.2 6
1.3 6
TOTAL 20
QUESTION 1
1.1 Multiple choice
1.1.1 B 
1.1.2 A 
1.1.3 C 
1.1.4 D 
1.1.5 A 
(5 × 2) (10)
Breakdown of marks
Question 1 Marks
1.1 10
TOTAL 10
QUESTION 2
2.1 Factors to be considered when preparing for a presentation from the scenario
2.1.1 Factors that must considered when preparing for a presentation.
– He prepared handouts to share with the board members. 
– He also rehearsed to ensure a confident presentation. 
NOTE: 1 Do not award marks for quotes that are incomplete/incorrect.
2 Mark the first TWO (2) responses only.
(2 × 1) (2)
2.1.2 Other factors that must considered when preparing for a presentation
– Be clear about the purpose of the presentation and write down an outline of the important information
that you want to share with your audience. 
– Ensure that the main aim of the presentation is captured  in your opening statement. 
– Include in your presentation only information  that is important and reliable. 
BS Grade 12 TG.indb 194 2022/03/14 10:18:49

– Familiarise yourself with the content of the presentation to ensure a smooth flow of the presentation. 
– Be familiar with the background of your audience,  so that your presentation speaks to their area
of interest. 
– Formulate is rough draft of your presentation,  that includes a logical flow of information from the
introduction to the body and finally to the conclusion thereof. 
– Summarise the main facts of the body in your conclusion and link your conclusion to the initial purpose of
the presentation. 
– Includes visual aids, that will enhance your presentation. 
– Prepare yourself for possible clarity questions that your audience may ask after the presentation. 
– Visit the venue of the presentation to ensure that the audio-visual equipment is in working order. 
– Any other relevant answer related to factors that must considered when preparing for a presentation
NOTE: Do not award marks for answers quoted in QUESTION 2.1.1.
Max (8)
2.2 Ways in which a presenter can handle feedback in a non-aggressive and professional manner
– Listen to each question carefully and ensure that you interpret the question correctly 
– Restate the question for your own understanding if you are uncertain about the question. 
– Respond only to a question when you are certain about the question be asked. 
– When answering a question, it’s important that you address the question and not the person asking the question. 
– Be prepared to acknowledge good questions by emphasizing the value of question to the presentation 
– Don’t attempt to answer questions that you do not know the answer to acknowledge this to your audience. 
– Don’t be afraid to admit mistakes made during the presentation if such mistakes are mentioned by your audience 
– It is important that you remain polite/courteous/professional when responding to questions 
– Refrain from becoming involved in a debate/argument with the person/s posing the questions. 
– Any other relevant answer related to ways in which a presenter can handle feedback in a non-aggressive and
professional manner.
Max (8)
Breakdown of marks
Question 2 Marks
2.1.1 2
2.1.2 8
2.2 8
TOTAL 18
QUESTION 3
3.1 Introduction
– The success of any presentation depends on the preparation that precedes the presentation. 
– Before the presentation the presenter must consider a number of factors that will enhance his/her presentation. 
– A multimedia presentation refers to the verbal presentation that is complemented with the use of slides/video
and audio. 
– The choice of a particular visual aid has a direct impact on the way the information/data is received by the
audience/stakeholders.
– Multimedia has the ability to enhance any presentation and captivate the audience. 
– It is important that presenters reflect on their presentations in order to improve their practice and
future presentations.
– Any relevant introduction related to factors that must be considered before a presentation/ aspects that must
be considered when designing a multimedia presentation/ impact of visual aids/ areas of improvement in the
next presentation.
Any (2 × 1) (2)
BS Grade 12 TG.indb 195 2022/03/14 10:18:49

3.2 Factors that must be considered before a presentation
– Be clear about the purpose of the presentation and write down an outline of the important information that you
want to share with your audience. 
– Ensure that the main aim of the presentation is captured in your opening statement. 
– Include in your presentation only information that is important and reliable. 
– Familiarise yourself with the content of the presentation to ensure a smooth flow of the presentation. 
– Be familiar with the background of your audience, so that your presentation speaks to their area of interest. 
– Formulate a rough draft of your presentation, that includes a logical flow of information from the introduction to the
body and finally to the conclusion thereof. 
– Summarise the main facts of the body in your conclusion and link your conclusion to the initial purpose of the
presentation. 
– Include visual aids, that will enhance your presentation. 
– Practice the delivery of your presentation to ensure that you do not exceed the time allocated to you. 
– Prepare yourself for possible clarity questions that your audience may ask after the presentation. 
– Visit the venue of the presentation to ensure that the audio-visual equipment is in working order. 
– Prepare/Print hand-outs that you may wish to share with your audience. 
– Any relevant answer related to factors that must be considered before a presentation.
Max (10)
3.3 Aspects that must be considered when designing a multimedia presentation
– Start your slides with the text and heading. 
– Contrast the colour of your text with the colour of the background. 
– Avoid using text that are not legible and font that is too small. 
– Choose images that will enhance the message/information that you would like to convey. 
– Include appropriate graphics to complement text on the slides. 
– To captivate your audience, include special effects/sounds/animation in your presentation. 
– Quick access to other documents/videos/ pictures/ graphs must be enabled by means of hyperlinks. 
– Refrain from including special effects/sounds/animation that will distract from the main message/information that
you would like to convey to your audience. 
– Do a spell check before the presentation to eliminate any spelling/grammatical errors from your slide presentation. 
– Structure the information on your slides in a logical sequence, that will allow your audience/the stakeholders to
follow your presentation. 
– Limit the information on each slide to retain the attention of your audience/the stakeholders. 
– Any relevant answer related to aspects that must be considered when designing a multimedia presentation.
Max (14)
3.4 Impact of visual aids
Interactive whiteboard/Smart boards
– Reduces the cost to the organisation of purchasing of additional equipment because the information/text/graphics
could be projected directly from a computer. 
– The availability of special pens allows the presenterto convey his idea/concepts/thoughts directly onto the
Interactive whiteboard/Smart boards. 
– Interactive whiteboard/Smart boards have the functionality of saving additional informationthat the presenter
noted thereon, during his presentation. 
– Sound/Visual Aids could effortless be used in conjunction with the Interactive whiteboard/Smart boards. 
– Effective to record responses and new proposals from the stakeholders/audience. 
– Any relevant answer related to positives/advantages of interactive whiteboard/smart boards.
AND/OR
BS Grade 12 TG.indb 196 2022/03/14 10:18:49

– A presenter not skilled in the use of the Interactive whiteboard/Smart boards may not be able to access all the
functionalities it offers. 
– Copyrights linked to certain software prevents the use of Interactive whiteboard/Smart boards in conjunction with
other computers. 
– The implementation of load shedding could disrupt the presentation, as this requires a stable supply of electricity. 
– Any relevant answer related to negatives/disadvantages of interactive whiteboard/smart boards.
Submax (6)
Impact of hand-outs/flyers/brochures
– The presenter may attract the attention of the stakeholders/audience  by providing them with useful hand-outs/
flyers/brochures prior to the start of presentation. 
– Important information pertaining to the presentation  could be provided to the stakeholders/audience after the
presentation 
– Any new/additional in the information  could be effortlessly included in subsequent copies of the hand-outs/flyers/
brochures 
– The information could be verified  by comparing it with the PowerPoint slides. 
– Any relevant answer related to positives/advantages of hand-outs/flyers/brochures.
AND/OR
– The information provided is of a visual/graphic nature and sound cannot not be infused to attract the interest of
the stakeholders/audience. 
– The availability of support material prior to the commencement of the presenter  may divert the stakeholders/
audience attention from the presentation. 
– Issuing handouts at the start of the presentation may divert the audience attention from your presentation. 
– The limited information that is included in the hand-outs/flyers/brochures may not capture the detailed objectives
of the presentation. 
– The cost of printing is high  and the hardcopies may easily be misplaced. 
– The author has no control over the illegal distribution  of the support material. 
– Any relevant answer related to negatives/disadvantages of hand-outs/flyers/brochures.
Submax (6)
Max (12)
3.5 Areas of improvement in the next presentation
– Identify the objectives not achieved and revise the objectives if necessary. 
– Infuse humour, at the appropriate time in your presentation. 
– Learn from constructive criticism to improve your next presentation. 
– Ensure that the information/data at your disposal is updated regularly/is accurate. 
– Consider the length of the presentation and adjust the presentation to match the allocated time of the
presentation. 
– Reflect whether the use of visual aids enhanced the value of the presentation. 
– Reflect on the time/length of the presentation and add/remove content if necessary. 
– Reconsider the logical flow of the of the content presented and determine the effectiveness thereof in its current
sequence. 
– Consider the quality of your feedback to questions from the audience/stakeholders. 
– Any relevant answer related to areas of improvement in the next presentation.
Max (10)
BS Grade 12 TG.indb 197 2022/03/14 10:18:49

3.6 Conclusion
– Planning for the presentation ensures that any challenges that may occur during the presentation are identified and
acted upon/corrected timeously. 
– Presenters need to consult/consider the various aspects for designing multimedia presentations in order to design
the most appropriate/suitable/ memorable/effective presentation for the audience. 
– Various visual aids have different purposes and impact differently on the audience. 
– Efficient presenters reflect upon the feedback provided by the audience so that they can constantly improve their
presentations in the future. 
– Any relevant conclusion related to factors that must be considered before a presentation/ aspects that must
be considered when designing a multimedia presentation/ impact of visual aids/ areas of improvement in the
next presentation.
Any (1 × 2) (2)
[40]
3.1 Introduction 2
3.2 Factors that must be considered before a presentation 10
3.3 Aspects that must be considered when designing a multimedia
14 Max
presentation
32
3.4 Impact of visual aids 12
3.5 Areas of improvement in the next presentation 10
3.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 198 2022/03/14 10:18:49

TOPIC 15 Forms of ownership:
Criteria for success and/or failure
Teaching tips:
• Refer learners to content covered in Grade 10: • Make a glossary of the meaning of concepts that
– Characteristics will be used when teaching the forms of ownership.
– Positives/Advantages • The concepts of limited liability and unlimited liability
– Negatives/Disadvantages refers to the extent of loss that will be carried by the
• Refer learners to content covered in Grade 11: owners to pay for the debts of the business.
– Benefits of companies over other forms of • Limited liability and unlimited liability are also
ownership determined by the legal status of the specific form
– Formation of companies of ownership.
– Legal requirements of companies • These aspects must be clarified in lessons as well as
in class discussions, or short assessment activities.
• Recap and revise the characteristics, positives/
advantages and negatives/disadvantages before • Teaching and learning should also focus on the
teaching the success and/or failure factors in each impact of non-profit companies with specific
form of ownership. reference to key words such as ‘income’,
‘donations’, ‘tax’, ‘existence’, ‘grants’, ‘directors’ and
‘legal personality’.
Grade 10 & 11. • The positives/advantages and negatives/
disadvantages of each form of ownership can be
used as a point of departure to explain how each
gaps.
criterion contributes to the success and/or failure of
the forms of ownership.
• It is important to note that non-profit companies • Consult the following past NSC Question Papers for
are different from the state-owned companies, even Section B and C type questions:
though some NPCs also provide essential services at – Nov 2020 P2 Question 5 – essay on forms of
no cost. ownership
• It should be noted that co-operatives form part of – June 2019 Question 6.4 – scenario on forms of
profit companies as their main aim is to also make a ownership
profit. – Nov 2018 Question 8 – essay on forms of
ownership
– May/June 2018 Question 3.5 – scenario on forms
of ownership
forms of ownership
Topic 15 Forms of ownership: Criteria for success and/or failure 199
BS Grade 12 TG.indb 199 2022/03/14 10:18:49

QUESTION 1
1.1.1 profit 
1.1.2 Continuity 
1.1.3 Legal personality 
(3 × 2) (6)
1.2 Distinction between limited liability and unlimited liability
LIMITED LIABILITY UNLIMITED LIABILITY
Losses are limited to the amount that the owner The liability of the owners to pay debts/claims is not
invested in the business. limited to the business only. 
The owner’s personal assets are protected against The owner’s personal assets may be seized to pay
the debts of the business.  for the debts of the business. 
Applicable to forms of ownership/companies  that Applicable to a sole proprietorship and partnership
have a seperate legal entity as they do not have a seperate legal entity/
personality. 
Any other relevant answer related to limited liability. Any other answer related to unlimited liability.
NOTE: 1 Differences do not have to be in tabular format.

2 The differences do not have to link but they must be clear.
3 If the differences are not clear, award only FOUR (4) marks/Mark either limited liability and
unlimited liability.
Max (8)
Breakdown of marks
Question 1 Marks
1.1 6
1.2 8
TOTAL 14
QUESTION 1
1.1 Forms of ownership from given statements
1.1.1 Public company
1.1.2 Partnership
1.1.3 Personal liability company
(3 × 2) (6)
1.2 Advantages of a public company
– The company has its own legal identiy and can close contracts on its own. 
– A large amount of capital can be raised because shares can be sold to the public. 
– Shareholders will be willing to buy shares because they have limited liability. 
– A competent board of directors can be appointed by the shareholders at the AGM. 
– Investers are willing to buy shares in a company because shareholders may buy and sell shares freely. 
– The public has access to the information of the company which could motivate them to buy shares from
the company. 
– Additional capital can be raised by issuing more shares or debentures.
BS Grade 12 TG.indb 200 2022/03/14 10:18:49

– Strict regulatory requirements protect the shareholders and they will be willing to buy more shares. 
– Any other relevant answer related to the advantages of a public company.
Max (8)
1.3 Differences between a partnership and a private company
ASPECTS PARTNERSHIP PRIVATE COMPANY
1.3.1 Management Partners manage the partnership Managed by a minimum of 1
 according to the partnership director who is elected by the
agreement.  shareholders. 
Submax (4)
1.3.2 Taxation Partners will be taxed in their Companies are taxed as a legal
private capacity.  entity at a set company tax rate
and the dividends are also taxed. 
Submax (4)
1.3.3 Capital Partners contribute capital Capital is raised by selling shares
according to the partnership to shareholders. 
agreement.  Submax (4)
Max (12)
Breakdown of marks
Question 1 Marks
1.1 6
1.2 8
1.3 12
TOTAL 26
QUESTION 1
1.1 Characteristics of co-operatives
– A minimum of five members are needed to start a Co-operative. 
– The objective of a co-operative is to create mutual benefit for the members. 
– It is a legal entity and can own land and open bank accounts. 
– The members of a co-operative own and run the business together and share in its profits. 
– The decisions are taken democratically,  in other words the members ’ vote wins. 
– Co-operatives are managed by a minimum of three directors. 
– The Co-operative must register with the Registrar of Cooperatives Societies
– The word ‘Co-operative Limited’ must appear at the end of its name. 
– The Co-operative is motivated by service rather than profit. 
– Any other relevant answer related to the characteristics of a co-operatives.
Max (8)
1.2 Criteria that contribute to the success and/or failure of a sole trader
FACTOR SUCCESS AND/OR FAILURE
Capital Capital will be carefully spent and Profits may not be large enough for
managed because the owner expansion. 
contributes all capital.  Cannot always attract suitable qualified
The owner may be able to secure people, resulting in less qualified staff. 
additional capital from a financial Owner is responsible for any capital
institution, if he/she is credit worthy borrowed. 
Any other relevant answer related to capital as a success and/or failure factor of a sole
trader.
Submax (4)
BS Grade 12 TG.indb 201 2022/03/14 10:18:49

Division of profits Owner receives all profits from the Profits may not cover all business debts,
business which can lead to capital which might hinder the expansion of the
growth.  business. 
The owner may use profit to expand the If the owner does not make a profit, 
business.  the income and livelihood of the owner
may be severely affected. 
Any other relevant answer related to division of profits as a success and/or failure factor
of a sole trader.
Submax (4)
Legislation It is easy/inexpensive to start.  Must comply with relevant municipal
There are limited regulatory regulations or it could close down. 
requirements regarding the name of the Business has no legal entity and
business.  unlimited liability of the owner may lead
Unlimited liability of the owner may to the failure of the business. 
encourage him/her to work harder to Personal debts and business debts are
ensure the success of the business.  one. 
Business has no continuity as it depends
on the life of the owner. 
Business may only qualify for more loans
if they are licenced. Loans are not easily
obtainable. 
The owner is personally liable for the loss of
the business and must budget carefully. 
Any other relevant answer related to legislation as a success and/or failure factor of a
sole trader.
Submax (4)
Max (12)
Breakdown of marks
Question 1 Marks
1.1 8
1.2 12
TOTAL 20
QUESTION 2
2.1 Introduction
– There are more than one possible form of ownership that is suitable for a business, however the owner(s) of the
business must consider various criteria to choose the best option.
– They must keep in mind aspects like the capital needed, taxation, management structures, legal aspects, liability, etc. 
– The main aim of these companies are to make a profit by providing a product or service. 
– Any other relevant introduction related to characteristics of a partnership/differences between limited liability and
unlimited liability/differences between a private company and a public company/criteria that contribute to the
success and/or failure of a public company.
Any (2 × 1) (2)
2.2 Characteristics of a partnership
– No legal formalities to start, only a written partnership agreement is required. 
– There are no legal requirements regarding the name of the business. 
– Partners combine capital and may also borrow capital from financial institutions. 
– Partners have unlimited liability and are jointly and severally liable for the debts of the business. 
– Profit is shared according to the partnership agreement. 
– Auditing of financial statements is optional. 
– Partners share responsibilities and they are all involved in decision making. 
BS Grade 12 TG.indb 202 2022/03/14 10:18:49

– The partnership does not pay income tax, only the partners in their personal capacities. 
– Partnership has no legal personality and therefore has no continuity. 
– Any other relevant answer related to the characteristics of a partnership.
Max (12)
2.3 Differences between limited liability and unlimited liability
Losses are limited to the amount that the owner The liability of the owners to pay debts/claims is not
invested in the business.  limited to the business only. 
Applicable to forms of ownership/companies  that Applicable to a sole proprietorship and partnership
have a seperate legal entity.   as they do not have a seperate legal entity/
personality. 
Any other relevant answer related to limited liability. Any other relevant answer related to unlimited
liability.
Max (8)
NOTE: 1 Differences do not have to be in tabular format.
2 The differences do not have to link but it must be clear.
3 If the differences are not clear, award only FOUR (4) marks/Mark either limited liability
and unlimited liability.
2.4 Differences between a private company and public company

PRIVATE COMPANY PUBLIC COMPANY
May not offer shares to the general public.  Trades its shares publicly  on the Johannesburg
Securities Exchange. 
Shares are not freely transferable Shares are freely transferable. 
Minimum of one director.  Minimum of three directors. 
Name must end with Proprietary Limited/(Pty) Ltd. Name must end with Limited/Ltd. 

Annual financial statements need not be audited Annual financial statements need to be audited and
and published.  published. 
Does not need to publish a prospectus as it cannot Have to register and publish a prospectus with the
trade its shares publicly.  Companies and Intellectual Property Commission/
CIPC. 
The company is not required to raise the minimum Must raise a minimum subscription prior to
subscription/ issue minimum shares.  commencement of the company. 
Any other relevant difference between private companies and public companies.
NOTE: 1 Differences do not have to be in a tabular format.

3 If the differences are not clear, award only SIX (6) marks/Mark either a private company or
public company.
Max (12)
BS Grade 12 TG.indb 203 2022/03/14 10:18:49

2.5 Criteria that contribute to the success and/or failure of a public company
Legislation Companies must comply with the Formation procedures are time
Companies Act 71 of 2008.  consuming, complicated and expensive,
The company and its owners as many legal documents need to be
(shareholders) are separate entities, which prepared/submitted. 
may encourage more people to join the High formation/establishment expenses
company.  require large start-up capital. 
Limited liability allows for greater risk Annual audit of financial statements is
taking, which may lead to growth of the costly. 
business.  If a public company does not comply with
Auditing of financial statements, gives legislation, its licence maybe withdrawn
shareholders the assurance that the by the Companies and Intellectual
business is being properly managed and Property Commission (CIPC). 
supports raising additional finance.  Any other relevant answer related to
Any other relevant answer related to legislation as a failure factor.
legislation as a success factor.
Management Managed by a board of competent highly Directors may not have a direct interest in
skilled directors which result in better the company, which can hamper growth
decision-making.  and profit maximisation. 
The management of the company can Directors may not be motivated to work
improve since directors are accountable to very hard because share-holders decide on
shareholders.  the directors’ remuneration. 
Shareholders can vote for directors at Large management structure can result
the AGM and appoint the most capable in timeous decision-making. 
directors to manage the company.  Directors’ fees increase the company’s
Directors bring creative ideas which expenses which reduces net profit. 
encourage efficiency in the company.  Management may open to legal
Any other relevant answer related to challenges if their reports do not comply
management as a success factor. with King Code IV. 
Some shareholders may not exercise their
voting rights resulting in choosing the
wrong person as a director. 
Any other relevant answer related to
management as a failure factor.
Max (14)
2.6 Conclusion
– Although companies have more requirements to comply with it has the potential to grow larger than other forms
of ownership. 
– One of the greatest advantages for shareholders is that they have limited liability for the debts of the company. 
– Whenever owners are liable for the debt of the business, it might motivate them to succeed. 
– Whenever owners are liable for management of the business they will work hard and make sound decisions. 
– Any other relevant conclusion related to characteristics of a partnership/differences between limited liability and
unlimited liability/differences between a private company and a public company/criteria that contribute to the
success and/or failure of a public company.
Any (1 × 2) (2)
BS Grade 12 TG.indb 204 2022/03/14 10:18:49

2.1 Introduction 2
2.2 Characteristics of a partnership 12
2.3 Differences between limited liability and unlimited liability 8 Max
2.4 Differences between private companies and public companies 12 32
2.5 Criteria contributing to success and/or failure of public company. 14
2.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
QUESTION 1
1.1 Multiple choice
1.1.1 B
1.1.2 D
1.1.3 B
1.1.4 A
1.1.5 A
(5 × 2) (10)
1.2 Forms of ownership
SOLE TRADER PARTNERSHIP PRIVATE PUBLIC NON-PROFIT
COMPANY COMPANY COMPANY
Who is Owner in own Partners in own Company Company Exempted from
responsible for capacity capacity tax
tax?
Who manage Owner/ Partners Minimum of 1 Minimum of 3 Minimum of 3
the business? manager according to director directors directors
partnership
agreement
How is capital Owner Partners Selling of shares Selling of shares Donations and
raised? according to to shareholders to public and grants
partnership debentures
agreement
How is profit Owner Partners Dividends Dividends No profit
shared? according to according to according to
partnership number of number and type
agreement shares of shares
BS Grade 12 TG.indb 205 2022/03/14 10:18:49

SOLE TRADER PARTNERSHIP PRIVATE PUBLIC NON-PROFIT
COMPANY COMPANY COMPANY
Who is liable for Owner, can lose Partners are Company Company No debts
debts? personal assets jointly and
individually liable
for debts
How is business Minimum Partnership Register MOI Register MOI Must prepare a
registered? requirements agreement with CIPC with CIPC MOI
(30)
Breakdown of marks
Question 1 Marks
1.1 10
1.2 30
TOTAL 40
QUESTION 2
2.1 Forms of ownership
2.1.1 New form of ownership
Public company (2)
2.1.2 Advantages of a public company
– The business has its own legal identity. 
– It is easy to raise funds for growth through the sale of shares. 
– Shareholder is only liable for the amount, which is invested, shareholders have limited liability. 
– Shareholders can appoint a knowledgeable board of directors. 
– Companies may buy and sell shares freely. 
– Shareholders can sell/transfer their shares freely. 
– The public has access to the information and this could motivate them to buy shares from a company. 
– Additional shares can be raised by issuing more shares or debentures. 
– Strict regulatory requirements protect shareholders. 
– Any other relevant answer related to the advantages of a public company.
Max (6)
2.1.3 Disadvantages of a partnership
– Partners have unlimited liability and which means they can lose personal assets. 
– Different personalities and options of partners can lead to conflict in disagreements. 
– There is a lack of continuity,  if one partner dies, retires or leave a new partnership must be formed. 
– Partners might not all  contribute money, assets, etc. equally. 
– There can be lack of capital and cash flow. 
– Each business partner is legally responsible for the joint liability of the partnership and can lose
personal belongings. 
– Any other relevant answer related to the disadvantages of a partnership.
Max (6)
2.2 Criteria that contribute to success/failure of a sole trader
Taxation Owner is only taxed on profits in personal If profits get too big it may end up paying
(2.2.1) capacity.  high tax in personal capacity. 
Depending on how much income the owner Failure by the owner to comply with
earns, his/her tax rate may be lower than the personal income tax regulations could lead
company tax rate.  to substantial financial penalties imposed
If the owner earns below a certain threshold by SARS. 
amount per year, no income tax is payable and Any other relevant answer related to
the business’s profits are thus not taxed.  failure factors of taxation for sole traders
Any other relevant answer related to success
factors of taxation for sole traders
Max (4)
BS Grade 12 TG.indb 206 2022/03/14 10:18:49

Division Owner receives all profits from the business Profits may not be large enough for
of profits which can lead to capital growth.  expansion. 
(2.2.2) The owner may use profit to expand the If the owner does not make a profit, the
business.  income and livelihood of the owner may be
Any other relevant answer related to success severely affected. 
factors of division of profits for sole traders. The owner is personally liable for the loss of
the business and must budget carefully. 
Any other relevant answer related to failure
factors of division of profits for sole traders.
Max (4)
Breakdown of marks
Question 2 Marks
2.1.1 2
2.1.2 6
2.1.3 6
2.2.1 4
2.2.2 4
TOTAL 22
BS Grade 12 TG.indb 207 2022/03/14 10:18:49

Formal Assessment Tasks
Assessment guidelines
Assessment drives instruction and learning by providing relevant information on the learners’ progress and
performance. Its main purpose is to support and improve further learning by incorporating artefacts, illuminating
various processes, checking in at multiple waypoints and placing value on multiple ways of knowing.
To make sure that tests and examinations are applicable to all learners, you should use Bloom’s taxonomy as
described below according to the DBE’s SBA tasks booklet.
Teachers who are successful also analyse mistakes made by the learners in tests and examinations to inform
teaching and to follow-up through improvement strategies.
Cognitive levels of learners (Bloom’s taxonomy)

The cognitive demand of a question refers to the type and level of thinking learners need to successfully
engage with and answer a question.
• High cognitive questions are those which demand that the learners manipulate bits of information
previously learned to create and support an answer with logically reasoned evidence. This sort of question is
generally interpretive, evaluative, inquiry-based, inferential, synthesis-based and open-ended.
• Lower cognitive questions are more basic. They ask learners to recall material previously presented and
learned. These questions are generally direct, closed, recall-related and that measure knowledge only –
factual and process.
Bloom’s revised taxonomy illustrates the different cognitive levels.
Cognitive level Comment Context

C1 Knowledge Requires recalling or Exactly the same context
Recall of factual or process recognising only. as a textbook example or a
knowledge in isolation, i.e. The learner practised or classroom-based exercise.
one step or set of steps, learned the isolatable bit, e.g. Explicitly part of the teaching
instructions and processes at fact, skill, process or steps and learning material.
a time. before.
C2 Understanding Requires knowledge and Familiar context.
Convert from one form of understanding of steps, Includes interpreting,
representation to another. processes or isolatable bits. exemplifying, classifying,
Translating ‘words’, pictures, summarising, inferring,
symbols, diagrams, etc., comparing and explaining.
for example ‘words’ into
spreadsheet formulas.
C3 Application Requires knowledge, Familiar context but with
Combining known routines, understanding and combining new elements or new
steps and processes to steps, routines, processes and circumstances.
complete a task. All of the isolatable bits. Learners working with
information required is Application of appropriate the same or similar steps
immediately available to the abstraction without having but different data or new
learner. to be prompted and without circumstances.
having to be shown how to
use it in a familiar context.
BS Grade 12 TG.indb 208 2022/03/14 10:18:50

Cognitive level Comment Context
C4 Analysis Requires reasoning, New context.
Understand how parts relate investigation or developing Unseen, unfamiliar problems
to a whole (pinpoint the a plan or determining a or tasks.
core or main aspects) or sequence of steps; has some
interact with each other and complexity.
use appropriate methods to Completing the task could
complete a task or solve a have more than one possible
problem. approach.
Organising component parts
to achieve an overall objective.
C5 Evaluation Requires weighing possibilities,
Judging or deciding according deciding on the most
to some set of criteria, appropriate.
generally without real right or Testing to locate errors.
wrong answers.
C6 Create Requires familiarisation with Novel situation.
Putting elements together to the task by exploring different The learner has no familiarity
form a coherent or functional approaches and interpreting with completed functional
whole or re-organising and analysing relevant whole.
elements into a new pattern approaches.
or structure. Generalisation.
In Business Studies, the above cognitive levels are collapsed providing for lower-order, middle-order and higher-
order levels.
Lower Order Middle Order Higher Order

C1 C2 & C3 C4, C5 & C6
Theoretical Recall (Knowledge) Understand and apply Analyse, evaluate and create
Practical Routine procedures Multi-step procedures Problem-solving
(Knowledge/ (Understanding/ (Analysing/
Remembering) Applying) Evaluating/
Creating)
Weighing 30% 40% 30%
Did you know

Within each cognitive level, there exists different difficulty levels.
Cognitive demand describes the type of thought process that is required to answer a question and is not
necessarily the same as the level of difficulty of a question, such as the difficulty of the content knowledge that
is being assessed.
Formal Assessment Tasks 209
BS Grade 12 TG.indb 209 2022/03/14 10:18:50

Difficulty levels
As per the same booklet, the difficulty level of a question refers to the ease with which a learner is able to
answer a question. It is described as follows:
Level Description
1 Easy to answer
2 Moderately challenging
3 Difficult to answer
4 Very difficult (It allows high achieving learners to excel above the others)
The difficulty level of a question is influenced by one or more of the following:

• The content (subject, concept, facts, principles or procedures), e.g.
• Content that is learned in Grade 10 and that is repeated and practised in Grade 11 and 12 usually becomes
easier by Grade 12.
• The number of steps required, or the length of the answer could influence difficulty.
• Stimulus (item or question)
• The language, text or scenario used could influence difficulty.
• Re-read required or limited time could influence difficulty.
• Task (process)
• Short questions vs paragraph or essays – answers that require extended writing are generally more difficult.
• Steps provided or scaffolding of questions – open-ended questions are generally more difficult than
structured questions, i.e. questions that lead or guide learners.
• Expected response.
• Mark scheme, memo, e.g. detail required in memo vs detail expected in question.
• Allocation of marks.
Assessment in Business Studies

Assessment is a continuous, planned process of identifying, gathering and interpreting information about the
performance of learners, using various forms of assessment. It involves four steps: generating and collecting
evidence of achievement; evaluating this evidence; recording the findings and using this information to
understand and thereby assist the learner’s development in order to improve the process of learning and teaching.
Assessment should be both informal (Assessment for Learning) and formal (Assessment of Learning). In both
cases regular feedback should be provided to learners to enhance the learning experience.
Assessment in Business Studies focuses on the knowledge, skills and values necessary for informed, ethical,
productive and responsible participation in economic sectors. The study and assessment of Business Studies
must not only cover essential business knowledge, skills and principles, but should also promote entrepreneurial
initiatives, sustainable enterprises and economic growth.
Business Studies covers valuable skills such as leadership, risk taking, problem solving and management skills
that prepare learners for success in different business environments. Teachers must take all these skills into
account when planning teaching, learning and assessment activities.
BS Grade 12 TG.indb 210 2022/03/14 10:18:50

Informal or daily assessment
Assessment for Learning aims to continuously collecting information of a learner’s achievement that can be
used to improve their learning.
Informal assessment is a daily monitoring of learners’ progress. This is done through observations, discussions,
practical demonstrations, learner-teacher conferences, informal classroom interactions, etc. Informal assessment
may be as simple as stopping during the lesson to observe learners or to discuss with learners how learning is
progressing. Informal assessment should be used to provide feedback to the learners and to inform planning for
teaching, but need not be recorded. It should not be seen as separate from learning activities in the classroom.
Learners or teachers can mark these informal assessment tasks.
Self-assessment and peer assessment actively involves learners in assessment. This is important as it allows
learners to learn from and reflect on their own performance. The results of the informal daily assessment tasks
are not formally recorded unless the teacher wishes to do so. The results of daily assessment tasks are not taken
into account for promotion and certification purposes.
Formal assessment
All assessment tasks that make up a formal programme of assessment for the year are regarded as Formal
Assessment or School-Based Assessment (SBA). Formal assessment tasks are marked and formally recorded by
the teacher for progression and certification purposes. All Formal Assessment tasks are subject to moderation
for the purpose of quality assurance and to ensure that appropriate standards are maintained.
Formal assessment provides teachers with a systematic way of evaluating how well learners are progressing in
a grade and in a particular subject. Examples of formal assessments include tests, examinations, practical tasks,
projects, oral presentations, demonstrations, performances, etc. Formal assessment tasks form part of a year-
long formal Programme of Assessment in each grade and subject.
The Programme of Assessment for Business Studies in Grades 10 and 11 comprises seven tasks which are
internally assessed. Of the seven tasks, the six tasks which are completed during the school year make up 25%
of the total mark for Business Studies, while the end-of-year examination is the seventh task and makes up the
remaining 75%.
In Grade 12, assessment is made up of two components: a Programme of Assessment which makes up 25%
of the total mark for Business Studies and an external examination which makes up the remaining 75%. The
Programme of Assessment for Business Studies comprises of six tasks which are internally assessed. The external
examination is externally set and moderated.
Formal assessment tasks form part of a year-long formal Programme of Assessment in each grade and subject,
are school-based and are weighted as follows for the different grades:
Grades Tasks done during the year End-of-year examination

R-3 100% n/a
4-6 75% 25%
7-9 40% 60%
10 and 11 25% 75%
12 25% External examination: 75%
The forms of assessment used should be appropriate to age and developmental level. The design of these
tasks should cover the content of the subject and include a variety of tasks designed to achieve the objectives
of the subject. Use the exemplars of formal assessment tasks provided in the learner’s book as a guide for
setting up formal assessment tasks.
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Formal assessments must cater for a range of cognitive levels and abilities of learners as shown below.
Table 1 The distribution of cognitive levels and Bloom’s Taxonomy
Cognitive level Percentage

Level 1 Knowledge/Remembering Low order:
Define, name, list, identify, give, etc. 30%
Level 2 Comprehension/Understanding Choose, explain, classify, give etc.
Level 3 Application/Applying knowledge Middle order:
Analyse, apply, describe, discuss, calculate,
etc. 50%
Level 4 Analysis Analyse, compare, differentiate, distinguish,
etc.
Level 5 Synthesis/Evaluating Higher order:
Analyse, compare, evaluate, etc. 20%
Level 6 Evaluation/Creating Recommend, suggest, advise, etc.
PROGRAMME OF ASSESSMENT GRADE 10-12

The Programme of Assessment is designed to spread formal assessment tasks in all subjects in a school
throughout a term. The requirements (number and nature of tasks) for Business Studies are indicated below.
The Programme of Assessment in Grade 12

Term 1 Term 2 Term 3 Term 4
Final Examination
June Examination
Trial Examination
Controlled Test
Presentation
Assessment
Case Study
Year mark
Project
Total
Paper 1 Paper 2 Paper 1 Paper 2 Paper 1 Paper 2
Total
50 100 50 50 300
marks
150 150 150 150 150 150
Pert term
25% 75% 25% 37.5% 37.5% 25% 37.5% 37.5% 2 Hours 2 Hours
weighting
Per annum 50 ÷ 5 100 ÷ 5 50 ÷ 5 150 ÷ 15 150 ÷ 15 50 ÷ 2.5 150 ÷ 15 150 ÷ 15
100 300 400
weighting = 10 = 20 = 10 = 10 = 10 = 20 = 10 = 10
Final
25 75 100
mark
Forms of Assessment
In Business Studies, the following forms of assessment are preferred, although they are not the only ones that
may be used:
• Projects
• Oral presentations
• Case studies
• Reports
• Tests
• Data responses
• Examinations
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Other forms of Assessment
PROJECT
A project is mandatory in all the grades. Only one project per annum is recommended per grade. When
preparing a project, consider the following minimum requirements:
• Learners should be given the necessary guidance prior to commencement of the project and progress must
be monitored throughout the project.
• All criteria used to assess the project must be discussed with the learners prior to them commencing with
the project.
• Generally, projects are given a longer period of time to complete as they involve some form of research,
consolidating and choosing relevant information and preparing a written document as evidence.
• Projects generally work well if they are structured around some form of problem.
• The purpose of a research assignment/project is to develop the research, critical thinking and problem-
solving skills of learners.
• Research will form part of the project - the project is the evidence of the research conducted.
• Projects should ideally be given to learners towards the end of a particular term, e.g. the first term for
submission during the next (second) term.
PRESENTATION
• Presentations can be written or oral, but there must be evidence of the presentation.
• All criteria used to assess the presentation must be discussed with the learners prior to the commencement
of the presentation.
• Where the resources are available, use of electronic presentation might be encouraged and where resources
are not available, posters and handout presentations should be encouraged.
CASE STUDY
• Case studies are a very good way of keeping the subject up to date and relevant.
• Learners are presented with a real-life situation, a problem or an incident related to the topic.
• They are expected to assume a particular role in articulating the position.
• They would draw on their own experience, the experience of peers or prior learning to interpret, analyse
and solve the problem or set of problems.
• Newspaper articles, magazine articles, TV or radio presentations form excellent case studies.
• Learners have to read and/or listen, digest the information and then make informed decisions.
• Questions can be from lower order - direct quotes from the article - to higher order when they are asked to
analyse comments and possibly make suggestions.
REPORT
A report is generally the written evidence of a survey, analysis or investigation. Generally, this will be shorter than
a project and more specific to the topic, e.g. the business has come to you for advice on their liquidity. Often this
implies consulting with an expert for advice on some problem - therefore it links very well with problem solving.
TESTS
Two tests, written under controlled conditions, are prescribed for Grades 10 – 11, and one test for Grade 12 in
term 1 only. These tests should adhere to the following:
• They should be completed by all classes in the same grade on the same day.
• All learners write the same test under examination conditions.
• Questions must comply with year-end examination standards.
• Where there is more than one teacher, agreement must be reached on the scope, as well as the date and
time of the test.
• The duration of each of these tests should be at least one hour for 100 marks.
• Tests should cover the different cognitive levels as in examinations. See table on cognitive levels under
‘Examinations’ in the following section.
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• Tests should also include problem-solving questions.
• Tests should cover a range of integrated topics, as determined by the work schedule and assessment plan.
• The two tests should be written in Terms 1 and 3 for Grade 10 – 11, and in Term 1 for Grade 12 only.
EXAMINATIONS
The following guidelines should be considered when constructing examinations:
• Content
Content stipulated specifically for the grade 100%
• Cognitive levels
Basic thinking skills (e.g. factual recall, low-level application and low-level comprehension) 30%
Moderately high thinking skills (e.g. more advanced application, interpretation and low-level analysis) 50%
Higher-order thinking skills (e.g. advanced analytical skills, synthesis and evaluation) 20%
• Problem solving
Approximately 10% of all examinations should address problem-solving questions using critical and
creative thinking. These include the solving of real-life problems within the context of the Business Studies
curriculum.
These problem-solving questions must also cover a range of cognitive skills (lower, middle and higher order)
to cater for all learners, but within the context of the learners.
While ratio and analysis can form very interesting problem-solving questions, the topic goes a lot further and
should be integrated into all aspects of the curriculum so that the learners develop the skills to apply the
knowledge acquired.
Mid-year examinations
Below is an outline of the structure of the mid-year examination in each of the grades:
Grades Paper Time Marks Topics

Grade 10 2 1½ hours 100 each As per Annual Teaching Plan
Grade 11 2 2 hours 150 each per grade
Grade 12 2 2 hours 150 each
Exam Paper Section A Section B Section C Total

Grade 10 20 marks 40 marks 40 marks 100 marks each
Trial examination (Grade 12 only)

A trial examination is one of the seven tasks of the Programme of Assessment for Grade 12. Ideally, the trial
examination should cover the full scope of the Grade 12 curriculum and should model the final Grade 12
examination.
Below is an outline of the structure of the trial examination:
Paper Time Marks Content

Grade 12 1 2 hours 150 Business
Environments and
Business Operations
2 2 hours 150
Business Ventures
and Business Roles
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End-of-year examinations
Grade 10-12 should write a seperate Paper 1 and Paper 2 consisting of 150 marks each as a final examination.
Paper 1 Paper 2
Papers Time Marks Business Business Business Business
Environments Operations Ventures Roles
Grade 10-12 2 2 hours 150 × 2 25% 25% 25% 25%
NOTES TO MARKERS
PREAMBLE Note
The notes to markers are provided for quality assurance purposes to The notes to markers below should
ensure the following: be used as a guide when marking/
• Fairness, consistency and reliability in the standard of marking. assessing any formal assessment
• Facilitate the moderation of candidates’ scripts at the different levels. task including examinations.
• Streamline the marking process considering the broad spectrum of
markers across the country.
• Implement appropriate measures in the teaching, learning and
assessment of the subject at schools/institutions of learning.
1. Candidates’ responses must be in full sentences for SECTIONS B and C.

However, this would depend on the nature of the question.
2. A comprehensive marking guideline has been provided but this is by no means exhaustive. Due
consideration should be given to an answer that is correct but:
NOTE: There is only ONE correct answer in SECTION A.
3. Take note of other relevant answers provided by candidates and allocate marks accordingly. (In cases
where the answer is unclear or indicates some understanding, part-marks should be awarded, for
example, one mark instead of the maximum of two marks.)
4. The word ‘Submax’ is used to facilitate the allocation of marks within a question or sub-question.
5. The purpose of circling marks (guided by ‘max’ in the breakdown of marks) on the right-hand side is to ensure
consistency and accuracy in the marking of scripts as well as for calculation and moderation purposes.
6. Subtotals to questions must be written in the right-hand margin. Circle the subtotals as indicated by
the allocation of marks. This must be guided by ‘max’ in the marking guidelines. Only the total for each
question should appear in the left-hand margin next to the appropriate question number.
7. In an indirect question, the theory as well as the response must be relevant and related to the question.
8. Correct numbering of answers to questions or sub-questions is recommended in SECTIONS A and B.
However, if the numbering is incorrect, follow the sequence of the candidates’ responses. Candidates will
be penalised if the latter is not clear.
9. No additional credit must be given for repetition of facts. Indicate with an ‘R’.
10. The allocation of marks must be informed by the nature of the question, cognitive verb used, mark
allocation in the marking guideline and the context of each question.
Cognitive verbs, such as:
10.1 Advise, name, state, mention, outline, motivate, recommend, suggest, (list not exhaustive) do
not usually require much depth in candidates’ responses. Therefore, the mark allocation for each
statement/answer appears at the end.
10.2 Define, describe, explain, discuss, elaborate, distinguish, differentiate, compare tabulate, justify, analyse,
evaluate, critically evaluate (list not exhaustive) require a greater depth of understanding, application
and reasoning. Therefore, the marks must be allocated more objectively to ensure that assessing is
conducted according to established norms so that uniformity, consistency and fairness are achieved.
11. Mark only the FIRST answer where candidates offer more than one answer for SECTION B and C questions
that require one answer.
BS Grade 12 TG.indb 215 2022/03/14 10:18:50

12. SECTION B
12.1 If, for example, FIVE facts are required, mark the candidate’s FIRST FIVE responses and ignore
the rest of the responses. Indicate by drawing a line across the unmarked portion or use the
word ‘Cancel’.
NOTE: This applies only to questions where the number of facts is specified.
12.2 If two facts are written in one sentence, award the candidate FULL credit. Point 12.1 above
still applies.
12.3 Use of the cognitive verbs and allocation of marks
– If the number of facts is specified, questions that require candidates to ‘describe/discuss/explain’
may be marked as follows:
– Fact 2 marks (or as indicated in the marking guidelines)
– Explanation 1 mark (two marks will be allocated in Section C)
The ‘fact’ and ‘explanation’ are given separately in the marking guideline to facilitate
mark allocation.
– If the number of facts required is not specified, the allocation of marks must be informed by the
nature of the question and the maximum mark allocated in the marking guideline.
13. SECTION C
13.1 The breakdown of the mark allocation for the essays is as follows:
Introduction
Maximum:
Content
32
Conclusion
Insight 8
TOTAL 40
13.2 Insight consists of the following components:
Layout/Structure Is there an introduction, a body, and a conclusion 2

Is the candidate able to break down the question into headings 2
subheadings/interpret it correctly to show understanding of what is being
asked
Analysis and
interpretation Marks to be allocated using this guide:
– All headings addressed: 1 (One ‘A’)
– Interpretation (16 to 32 marks): 1 (One ‘A’)
Are there relevant decisions/facts/responses made base on the 2
questions
Marks to be allocated using this guide:
Option 1: Only relevant facts: 2 marks (No ‘-S’)
Where a candidate answers 50% or more (two to four sub-questions) of
the question. With only relevant facts: no ‘-S- appears in the left margin.
Award the maximum of TWO (2) marks for synthesis.
Option 2: Some relevant facts: 1 marked (One ‘-S’)
Where a candidate answers less than 50% (only one sub-question) of
the question with only OR some relevant facts; one ‘-S’ appears in the
Synthesis
left margin. Award a maximum of ONE (1) mark for synthesis. Award a
maximum of ONE (1) mark for synthesis.
Option 3: Some relevant facts: 1 marked (One ‘-S’)
Where a candidate writes FOUR questions, but one sub-question of the
questions with no relevant facts; one ‘-S’ appears in the left margin. Award
a maximum of ONE (1) mark for synthesis.
Option 4: No relevant facts: 0 marks (Two ‘-S’)
Where a candidate answers less than 50% (only one sub-question) of the
question with no relevant facts; two ‘-S’ appears in the left margin. Award
a ZERO mark for synthesis.
BS Grade 12 TG.indb 216 2022/03/14 10:18:50

Is there evidence of examples based on recent information, current 2
Originality
trends and developments
TOTAL FOR INSIGHT: 8
TOTAL MARKS FOR FACTS: 32
TOTAL MARKS FOR ESSAY (8 + 32): 40
NOTE: 1. No marks will be awarded for contents repeated from the introduction and conclusion.
2. The candidate forfeits marks for layout if the words INTRODUCTION and CONCLUSION
are not stated.
3. No marks will be awarded for layout, if the headings INTRODUCTION and
CONCLUSION are not supported by an explanation.
13.3 Indicate insight in the left-hand margin with a symbol e.g. (‘L, A, –S and/or O’).
13.4 The breakdown of marks is indicated at the end of the suggested answer/marking guideline to
each question.
13.5 Mark all relevant facts until the SUBMAX/MAX mark in a subsection has been attained. Write
SUBMAX/MAX after maximum marks have been obtained but continue reading for originality ‘O’.
13.6 At the end of each essay indicate the allocation of marks for facts and marks for insight as follows:
(L – Layout, A – Analysis, S – Synthesis, O – Originality) as in the table below.
CONTENT MARKS
Facts 32 (max)
L 2
A 2
S 2
O 2
TOTAL 40
13.7 When awarding marks for facts, take note of the sub–maximum indicated, especially if candidates
do not use the same subheadings. Remember, headings and subheadings are encouraged and
contribute to insight (structuring/logical flow/sequencing) and indicate clarity of thought. (See
MARK BREAKDOWN at the end of each question.)
13.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she may still obtain marks
for layout.
13.9 If a different approach is used by candidates, ensure that the answers are assessed according to the
mark allocation/subheadings as indicated in the marking guideline.
13.10 Award TWO marks for complete sentences. Award ONE mark for phrases, incomplete sentences
and vague answers.
RECORDING AND REPORTING

Recording is a process in which the teacher documents the level of a learner’s performance in a specific
assessment task. It indicates learner progress towards the achievement of the knowledge as prescribed in the
Curriculum and Assessment Policy Statements. Records of learner performance should provide evidence of the
learner’s conceptual progression within a grade and her/his readiness to progress or promote to the next grade.
Records of learner performance should also be used to verify the progress made by teachers and learners in the
teaching and learning process.
Reporting is a process of communicating learner performance to learners, parents, schools, and other
stakeholders. Learner performance can be reported in a number of ways. These include report cards, parents’
meetings, school visitation days, parent-teacher conferences, phone calls, letters, class or school newsletters,
etc. Teachers in all grades report in percentages against the subject. Seven levels of competence have been
described for each subject listed for Grades R - 12.
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The various achievement levels and their corresponding percentage bands are as shown in the Table below.
CODES AND PERCENTAGES FOR RECORDING AND REPORTING

Rating code Description of competence Percentage
7 Outstanding achievement 80 - 100
6 Meritorious achievement 70 - 79
5 Substantial achievement 60 - 69
4 Adequate achievement 50 - 59
3 Moderate achievement 40 - 49
2 Elementary achievement 30 - 39
1 Not achieved 0 - 29
Take note
The seven-point scale should have clear descriptors that give detailed information for each level.
Teachers will record actual marks against the task by using a record sheet, and report percentages against the
subject on the learners’ report cards.
MODERATION OF ASSESSMENT
Moderation refers to the process that ensures that the assessment tasks are fair, valid and reliable. Moderation
should be implemented at school, district, provincial and national levels. Comprehensive and appropriate
moderation practices must be in place for the quality assurance of all subject assessments.
Formal assessment (SBA)

All Grade 10 and 11 tasks are internally moderated, while Grade 12 tasks should be externally moderated.
The subject head for Business Studies or Head of Department for the Business, Commerce and Management
subjects at the school will generally manage this process. Moderation at the school will be carried out at least
once per school term.
BS Grade 12 TG.indb 218 2022/03/14 10:18:50

School–based assessment (SBA)
Term 1
Exemplar
GRADE 12
Business Studies
MARCH 202_
CASE STUDY: MARKING GUIDELINES

Marks: 50 Time: 1 Hour
QUESTION 1
1.1.1 BBBEE pillars from the case study
BBBEE pillars Motivations
1. Skills development  Learnerships and learning programmes are
provided to black employees. 
2. Ownership  KL also afforded more opportunities for black
people to become shareholders in the business.
2. Award marks for the BBBEE pillars even if the quote is incomplete.
3. Do not award marks for the motivation if the BBBEE pillars were incorrectly identified.
Max (6)
1.1.2 Meaning of learnerships

– Theoretical/Practical training opportunities that leads to a recognised occupational qualification. 
– They provide structured learning programmes that are completed during work hours for a specified period
of time. 
– It includes a training course with learning material as well as practical work experience. 
– Agreement between a learner/trainee, employer and a training provider. 
– It may sometimes include employment for a specified period after the learnership is completed. 
– Any other relevant answer related to the meaning of learnerships.
Max (4)
BS Grade 12 TG.indb 219 2022/03/14 10:18:50

1.1.3 Actions regarded as non-compliance according to the NCA
– Refusing to grant consumers credit based on any form of discrimination such as race, gender, age, religion, language,
culture, sexual orientation etc. 
– Charging different interest rates to different consumers based on discriminatory grounds such as race, gender, age,
religion, language, culture, sexual orientation etc. 
– Granting credit recklessly to consumers and fail to explain the credit contract to consumers. 
– Failing to conduct affordability assessments to determine whether the customer actually can afford the credit being
offered. 
– Blacklisting customers without exhausting all efforts to recover the debt from the consumer. 
– Any other relevant answer related to actions regarded as non-compliance according to the NCA.
Max (4)
1.1.4 Human resources activities from the case study
human resources activities Motivations
1. Recruitment  KL identified certain vacancies in the business and
started the process of finding and hiring suitable
candidates in line with the Labour Relations Act
(LRA), 1995 (Act 66 of 1995). 
2. Induction  Newly appointed employees were introduced to
KL so that they could familiarise themselves with their
new physical work environment. 
2. Award marks for the human resources activities even if the quote is incomplete.
3. Do not award marks for the motivation if the human resources activities were
Max (6)
1.1.5 Implication of the LRA on the human resources function
– Allows for the establishment of trade unions/collecting bargaining/bargaining councils which may directly
influence operations within human resources/the business. 
– Employees cannot be easily dismissed as bargaining council/Commission for Conciliation, Mediation and
Arbitration (CCMA) processes need to be correctly followed. 
– Provides a framework for bilateral meetings/collecting bargaining/bargaining councils where employees, trade
unions and employers discuss matters relating to employment. 
– Promotes orderly negotiations and employee participation in decision making in the workplace. 
– Protects the rights of employees/employers as outlined in the Constitution. 
– Advances economic development/social justice/labour peace. 
– Any other relevant answer related to the implication of the LRA on the human resources function.
Max (4)
1.1.6 King Code principles from the case study
King code principles Motivations
1. Transparency  KL ensures that auditing and other reports
are accurately done and made available to
shareholders and employees. 
2. Accountability  The board also ensures that the business ethics
are effectively implemented in the workplace. 
2. Award marks for the King Code principles even if the quote is incomplete.
3. Do not award marks for the motivation if the King Code principles were incorrectly
identified.
Max (6)
BS Grade 12 TG.indb 220 2022/03/14 10:18:50

1.1.7 Other King Code principle
Responsibility 
– The business/board should develop and implement programmes that should be aimed at protecting the communities
in which they operate. 
– The business/board should develop remedial programmes to protect the environment, for example, reduce air and
water pollution.
– Any other relevant answer related to responsibility as a King Code principle.
Max (3)
1.1.8 Ways in which professional, responsible, ethical and effective business practices should be conducted
– Business decisions and actions must be clear/transparent to all stakeholders. 
– KL should be accountable /responsible for their decisions and actions/ patent rights. 
– KL should hire honest/trustworthy accountants/financial officers with good credentials to ensure transparent
recording and financial statements. 
not finding loopholes to avoid paying taxes. 
– KL should draw up a code of ethics/conduct.  This document must state acceptable behaviour in the
business. 
– There must be on-going development and training for all employees of KL. 
– Performance management systems/Appraisals should be in place to motivate employees of KL. 
– There must be adequate internal controls/monitoring/evaluation to ensure accountability of KL. 
– KL’s salaries and wages must be fair and in line with the requirements of the BCEA. 
– KL must also remunerate employees for all work done and for working overtime. 
– KL must take care of the environment and use green policies in the workplace such as recycling paper, responsible
disposal of waste material and safe energy. 
– KL must not start a business venture at someone else’s expense with the ideas of other businesses/individuals and
respect intellectual property of other businesses. 
– KL should treat all their employees equally, regardless of their race/colour/age/ gender/disability etc. KL must also
adhere to the requirement of EEA act. 
– KL must provide good quality goods and services to customers and pay attention to the safety of customers as well
as give clear information to the customers to make informed decisions. 
– Any other relevant answer related to ways in which professional, responsible, ethical and effective business practices
should be conducted by KL.
Max (4)
1.1.9 Problem-solving techniques
– Delphi technique 
– Force field analysis 
– Brainstorming 
– Nominal group technique 
– SCAMPER 
– Empty chair technique 
– Forced-combinations
– Mind mapping 
– Any other relevant answer related to problem-solving techniques.
NOTE: Mark the first THREE only.
Max (3)
BS Grade 12 TG.indb 221 2022/03/14 10:18:50

1.1.10 Distinction between problem-solving and decision making
Problem-solving Decision making
Problems can be solved by a group/ team or an It is often done by one person/or senior
individual team member which makes it more management who makes it authoritarian. 
inclusive. 
They will generate/identify alternative solutions Various alternatives are considered before deciding
and evaluate it critically.  on the best one. 
This process of analysing a situation will identify This process is part of the problem-solving cycle as
strategies to bring about change.  decisions need to be taken in each step. 
Any other relevant answer related to the description Any other relevant answer related to the description
of problem-solving. of decision making.
Max (4)
1.1.11 Advantages of creative thinking in the workplace
– Better, unique or unconventional  ideas and solutions are generated. 
– May give the business a competitive advantage  if unusual, unique solutions, ideas, strategies
are implemented. 
– Complex business problems  may be solved. 
– Productivity increases as management and employees may quickly generate multiple ideas  which utilises
time and money more effectively. 
– Managers and employees have more confidence  as they can live up to their full potential. 
– Managers will be better leaders  as they will be able to handle/manage change(s) positively and creatively. 
– Managers and employees can develop a completely new outlook , which may be applied to any task(s)
they may do. 
– Leads to more positive attitudes  as managers and employees feel that they have contributed towards
problem solving. 
– Improves motivation  amongst staff members. 
– Managers and employees have a feeling of great accomplishment  and they will not resist or obstruct the
process once they solved a problem and contributed towards the success of the business. 
– Management and employees  may keep up with fast changing technology. 
– Stimulates initiative from employees and managers , as they are continuously pushed out of their
comfort zone. 
– Creativity may lead to new inventions  which improves the general standard of living. 
– Any other relevant answer related to the advantages of creative thinking in the workplace.
Max (6)
[50]
BS Grade 12 TG.indb 222 2022/03/14 10:18:50

Term 1
Exemplar
GRADE 12
Business Studies
MARCH 202_
CONTROLLED TEST: MARKING GUIDELINES

Marks: 100 Time: 1½ Hours
Section A
QUESTION 1
1.1 Multiple choice
1.1.1 D 
1.1.2 B 
1.1.3 D 
1.1.4 C 
1.1.5 A 
(5 × 2) (10)
1.2.1 F 
1.2.2 E 
1.2.3 I 
1.2.4 A 
1.2.5 B 
(5 × 2) (10)
TOTAL SECTION A: 20
Breakdown of marks
Question 1 Marks
1.1 10
1.2 10
TOTAL 20
BS Grade 12 TG.indb 223 2022/03/14 10:18:50

SECTION B
Mark the FIRST TWO answers only.
QUESTION 2: BUSINESS ENVIRONMENTS

2.1 Industrial analysis tools from given statements
2.1.1 Porter’s Five Forces model 
2.1.2 PESTLE Analysis (4)
2.2 Diversification strategies
diversification strategies Motivations
1. Concentric diversification  Tranquil Lifestyle Services has added a new range
of body massage therapy services that will appeal
to new customers. 
2. Horizontal diversification  TLS decided to introduce car was services based on
the needs of their clients.
2. Award marks for the correct diversification strategies even if the quote is incomplete.
3. Do not award marks for the motivation, if the diversification strategies were
4. Do not award marks for they also offer lower prices for their services to attract more
customers, because this is an example of market penetration as a type of intensive
strategy.
Max (6)
– Covers all employees in the workplace, if both parties/employers and employees  meet all the necessary safety
– Provides employees with financial/monetary compensation for any injury/disability/illness that results from
– Any other relevant answer related to the positives/advantages of COIDA on businesses.
AND/OR
in cash flow problems for the business. 
– Implementation processes/procedures required by the Act may be expensive and place additional financial burden
on struggling businesses. 
– Employers may be forced to pay heavy penalties if they are found guilty of negligence, or for not enforcing safety
measures. 
– South Africans who are temporarily/permanently employed in foreign countries are not covered by COIDA. 
Max (6)
BS Grade 12 TG.indb 224 2022/03/14 10:18:50

2.4 Ways in which businesses can comply with the Labour Relations Act, 1995 (Act 66 of 1995)
– Employees should not be unfairly/illegally dismissed. 
– Allow/Support the establishment of workplace forums. 
– Employers should not breach/ignore any collective agreement.
– Businesses must allow employees to form trade unions/participate in union activities/legal strikes. 
– Disclose all relevant information required by trade union representatives to do their jobs effectively. 
– Any other relevant answer related to ways in which businesses can comply with the LRA.
Max (4)
[20]
Breakdown of marks
Question 2 Marks
2.1.1 2
2.1.2 2
2.2.1 6
2.2.2 6
2.3 4
TOTAL 20
QUESTION 3: BUSINESS OPERATIONS
3.1 Aspects that should be included in an employment contract
– Personal details of the employee.
– Details of the business/employer e.g. name/address, etc. 
– Job title/Position
– Job description e.g. duties/working conditions/responsibilities. 
– Job specification e.g. formal qualifications/experience/willingness to travel. 
– Date of employment/commencement of employment. 
– Place where employee will spend most of his/her working time/conduct work activities. 
– Hours of work, e.g. normal time/overtime. 
– Remuneration, e.g. weekly/biweekly/fortnightly/monthly pay. 
– Benefits/Fringe benefits/Perks/Allowances. 
– Leave, e.g. sick/maternity/annual/adoption leave/family responsibility leave. 
– Employee deductions (compulsory/non-compulsory). 
– Period of contract/Details of termination. 
– Probation period. 
– Signatures of both the employer and employee. 
– List of documents that form part of the contract, e.g. appointment letter/code of conduct/ethics. 
– Disciplinary policy, e.g. rules and disciplinary procedure for unacceptable behaviour. 
NOTE: Mark the first THREE (3) only.
(3 × 1) (3)
3.2.1 THREE aspects included in the induction programme from the scenario
– Overview of RR 
– Information on the RR’s products 
– Various personnel policies 
(3 × 1) (3)
3.2.2 TWO other aspects that must be included in the induction programme
– Tour of the premises/business. 
– Meeting with senior management who will explain the company’s vision/mission/values/job analysis/daily tasks. 
– Introduction to key people and immediate colleagues. 
– Conditions of employment, e.g. working hours/leave application process/perks/disciplinary procedures, etc. 
– Discussion of the employment contract and conditions of service. 
– Any other relevant answer related to other aspects that must be included in the induction programme of RR.
NOTE: 1. Mark the first TWO (2) only.
2. Do not award marks for the aspects named in QUESTION 3.2.1.
(2 × 2) (4)
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3.3 Implication of the Employment Equity Act (EEA) on the human resources function
– The HRM must promote/provide  equal opportunities/promote equality in the workplace. 
– The HRM must report to the Department of Labour on the progress  regarding the implementation of the
employment equity plan. 
– Compile employment equity plans  that indicate how they will implement affirmative action. /Ensures that the
human resources function promotes  affirmative action/establishes/achieves employment equity plans. 
– Assign a manager to ensure that the employment equity plan  will be implemented/regularly monitored. 
– Ensure that affirmative action  promotes diversity in the workplace. 
– Any other relevant answer related to the implications of the Employment Equity Act (EEA) on the human resources
function.
Max (4)
– The human resources manager (HRM) should evaluate the job/prepare a job analysis, that includes the job
specification/job description/in order to identify recruitment needs. 
– The HRM should indicate the job specification/key performance areas to attract suitable candidates. 
– Choose the method of recruitment, e.g. internal/external recruitment, to reach/target the suitable applicants/
candidates. 
– If the external recruitment is chosen, the relevant recruitment sources should be selected, e.g. recruitment agencies/
tertiary institutions/ newspapers/electronic media, etc. 
– Vacancies can be internally advertised via internal email/word of mouth/posters/staff notices etc. 
– External recruitment should be considered if internal recruitment was unsuccessful. 
– The advertisement should be prepared with the relevant information, e.g. the name of the company, contact details,
contact person, etc. 
– Place the advertisement in the selected media that will ensure that the best candidates apply. 
– Any other relevant answer related to the recruitment procedure that businesses should follow as a human resources
activity.
Max (6)
[20]
Breakdown of marks
Question 3 Marks
3.1 3
3.2.1 3
3.2.2 4
3.3 4
3.4 6
TOTAL 20
QUESTION 4: BUSINESS ROLES
4.1 King Code principles for good corporate governance from given statements
4.1.1 Accountability 
4.1.2 Responsibility 
4.1.3 Transparency 
(6)
4.2 Distinction between ethical behaviour and professional behaviour
Ethical behaviour Professional behaviour
Refers to the principles of right and wrong/ Refers to what is right/wrong/acceptable in a
acceptable in society. business. 
Conforms to a set of values that are morally Set of standards of expected behaviour. 
acceptable. 
Forms part of a code of conduct to guide Applying a code of conduct of a profession or
employees to act ethically.  business. 
BS Grade 12 TG.indb 226 2022/03/14 10:18:50

Focuses on developing a moral compass for Focuses on upholding the reputation of a business/
decision making.  profession. 
Involves following the principles of right and wrong Includes guidelines on employees’ appearance/
in business activities/practices/ dealings.  communication/attitude/ responsibility, etc. 
Any other relevant answer related to the description Any other relevant answer related to the description
of ethical behaviour. of professional behaviour.
3. Award a maximum of TWO (2) marks if the distinction is not clear/Mark either ethical
or professional behaviour only.
Max (4)
4.3.1 Unprofessional business practices from the scenario
1. Unauthorised use of workplace funds  The administrative clerk at OF uses money from the
cheque account without prior authorisation from
senior management. 
2. Abuse of worktime  The employees of OF often take extended lunch
breaks which is affecting their sales. 
2. Award marks for the correct unprofessional business practices even if the quote
is incomplete.
3. Do not award marks for the motivation, if the unprofessional business practices were
4. Do not penalise learners for writing the full unprofessional business practice:
Unauthorised use of workplace funds and resources.
Max (6)
4.3.2 Ways in which the business could deal with ONE of the unprofessional business practices
Unauthorised of workplace funds and recourses
– OF must conduct regular audits. 
– OF must identify risk areas/ vulnerable areas. 
– OF must limit the number of employees having access to business funds/assets. 
– OF must implement/Introduce fraud prevention strategies. 
– OF must educate employees about the impact of fraud. 
– Fraud prevention should be a collective responsibility of OF and the workers. 
– Clear policies should be in place so that employees are aware of what is considered to be fraud. 
– OF should set up systems in the organisation for the reporting of fraud and corruption. 
– Any other relevant answer related to ways in which OF could deal with unauthorised use of workplace funds and
recourses as an unprofessional business practice.
Submax (4)
OR
Abuse of worktime
– Speak directly to those employees who abuse work time. 
– The Code of conduct/ethics should contain clear rules about abuse of work time. 
– There must be conduct training on the contents of the code of conduct/ethics. 
– Code of conduct/ethics should be signed by all employees so that they are aware of its contents. 
– OF should monitor employees to ensure that tasks are completed. 
– OF should structure working hours in such a way that employees have free/flexible time for personal matters. 
BS Grade 12 TG.indb 227 2022/03/14 10:18:50

– OF must create a culture of responsibility/strengthen team spirit in order for all employees to feel responsible for
what has to be achieved. 
– Any other relevant answer related to ways in which OF could deal with abuse of worktime as an unprofessional
business practice.
Submax (4)
Max (4)
[20]
Breakdown of marks
Question 4 Marks
4.1.1 2
4.1.2 2
4.1.3 2
4.2 4
4.3.1 6
4.3.2 4
TOTAL 20
TOTAL SECTION B: 40
SECTION C
Marks the FIRST question only.
QUESTION 5: BUSINESS ENVIRONMENTS (LEGISLATION)
5.1 Introduction
– BBBEE is a recent legislation that aim to ensure a path of equality and fairness for all South Africans.
– BBBEE has been developed in response to the demands for redress and equity in South Africa.
– BBBEE was promulgated/established to bring the majority of South Africans into the mainstream of the economy,
to significantly accelerate economic opportunities for previously disadvantaged people and to spread wealth more
broadly across all population groups.
– A BBBEE scorecard is used to determine the BBBEE statuses of businesses. 
– BBBEE aims to integrate all citizens of South Africa meaningfully into the economy.
– Actions regarded as non-compliance refers to actions that are unjust, unfair, illegal and show prejudice
towards employees in the context of violating BBBEE.
– Any other relevant introduction related to the purpose/revised pillars/impact/actions regarded as non-compliance
according to BBBEE.
Any (2 × 1) (2)
5.2 Purpose of the BBBEE
– Enables wealth to be spread more broadly across all population groups.
– Aims at targeting inequality in the South African economy.
– Outlines areas that would give the government a platform for bringing equitable spread of wealth amongst all
population groups.
– Allows for the development of Codes of Good Practice.
– Increases the number of black people that manage/control South African businesses.
– Any other relevant answer related to the purpose of the BBBEE.
Max (10)
5.3 Implications of the revised pillars of BBBEE
Ownership
– Business should include black people in shareholding/partnerships/franchises.
– Encourage small black investors to invest in big companies and share ownership.
– Exempted Micro Enterprises (EMEs) with an ownership of 50% or more of black people are promoted to level 3 of
the BEE scorecard.
– More opportunities are created for black people to become owners/ entrepreneurs.
– Large businesses should form joint ventures with small black owned businesses and share business risks.
– Businesses sometimes find it difficult to locate suitable black business partners/shareholders.
BS Grade 12 TG.indb 228 2022/03/14 10:18:50

– Many black people cannot afford shares in companies/contributions to partnerships.
– Any other relevant answer related to ownership as a revised BBBEE pillar.
Submax (4)
Enterprise and supplier development (ESD)
– Business must create jobs as ESD promotes local manufacturing.
– Identify black owned suppliers that are able to supply goods and services.
– Outsource services to suppliers that are BBBEE compliant.
– Businesses are encouraged to invest/support black owned SMMEs.
– Develop the business skills of small/black owned suppliers, e.g. sales techniques, legal advice, etc.
– Support the cash flow of small suppliers by offering them preferential terms of payment.
– Contribution can be monetary, e.g. loans/investments/donations.
– Contribution can be non-monetary, e.g. consulting services/advice/entrepreneurial programmes, etc.
– SMMEs will be encouraged to use their own business initiatives to make them sustainable.
– Develop and implement a supplier development plan/supply chain.
– Small/Large businesses may not be able to afford enterprise development investment/support.
– Black owned SMMEs may become too reliant on support from other businesses/unable to take their own initiatives.
– BBBEE suppliers may be without good workmanship.
– Smaller businesses that are not BBBEE compliant lose business.
– Businesses are forced to choose from a smaller pool of suppliers.
– Any other relevant answer related to enterprise and supplier development (ESD) as a revised BBBEE pillar.
Submax (4)
Socio-economic development/Social responsibility
– Businesses should contribute towards social investment projects and community development. 
– Businesses should focus on critical areas of CSI such as development in the country e.g. environmental awareness/
education/ housing/poverty/ unemployment etc. 
– Businesses should distribute scarce CSI resources to selected beneficiaries in the community. 
– Businesses should promote sustainable use of natural resources and support businesses that make use of
sustainable production techniques and sustainable energy utilisation practices. 
– Businesses often are not knowledgeable or experts at societal issues and social responsibility, and may result in
wastage of financial resources if not investigated correctly. 
– Any other relevant answer related to socio-economic development/social responsibility as a revised BBBEE pillar.
Submax (4)
Max (12)
5.4 Impact of BBBEE
– Businesses who are BBBEE compliant regarding the five pillars  will be rated high on the BBBEE scorecard/may get
government tenders/may attract other BBBEE business partners/suppliers. 
– Encourages businesses to address the demands  for redress/equity directly in the workplace. 
– Provides for enhanced human resources development  through effective training and development. 
– Promotes enterprise development, by developing entrepreneurial skills  of designated people to establish their
own businesses. 
– Businesses that focus on BBBEE shows commitment towards  the social/education/economic developments in the
community/country. 
– Improves the image of the business  because a good BBBEE rating, attracts more investors to the business. 
– Any other relevant answer related to the positive impact/advantages of BBBEE on businesses.
AND/OR
Negative/Disadvantages
– The implementation of BBBEE is time-consuming, expensive, prescriptive  and administratively burdensome,
especially attaining BBBEE Scorecard ratings and training of employees. 
– Businesses have to endure rigid processes of having their BBBEE compliance measured/verified  by an independent
BBBEE verification agency. 
– Some processes associated with BBBEE, if not monitored properly,  may lead to corruption/nepotism/ cronyism. 
– BBBEE advocates Enterprise and Supplier Development (ESD) which means certain businesses that are not approved
 BBBEE vendors may be excluded from supplying goods and services. 
BS Grade 12 TG.indb 229 2022/03/14 10:18:51

– Businesses that wish to acquire government tenders and conduct business with state,  must have their BBBEE
status assessed annually, which increases the administrative burden of businesses. 
– Costs increases as businesses have to spend money on the correct compliance with the five BBBEE pillars  in order
to obtain a good BBBEE rating. 
– Any other relevant answer related to the negative impact/disadvantages of BBBEE on businesses.
Max (12)
5.5 Actions regarded as non-compliance according to BBBEE
– Employers who incorrectly implement the means to achieve the requirements of the five BBBEE pillars. 
– Employers who fail to correctly implement affirmative action to meet BBBEE responsibilities, in the context of
employment equity. 
– Employers who promote unsuitable people into management positions at the expense of qualified previously
disadvantaged people. 
– Employers who are deliberately involved in fronting, corruption, nepotism and cronyism, and because of this, certain
parties (individuals) benefit at the expense of other parties (individuals). 
– Refusing to award government tenders by the state to BBBEE compliant vendors. 
– Any other relevant answer related to actions regarded as non-compliance according to BBBEE.
Max (12)
5.6 Conclusion
– The implementation of BBBEE has resulted in an increase in the number of black people that manage/own/control
businesses in the South African economy. 
– To obtain a good rating, businesses will have to spend money in the areas covered by the BBBEE pillars. 
– Any other relevant conclusion related to the purpose/revised pillars/impact/actions regarded as non-compliance
according to BBBEE.
Any (1 × 2) (2)
[40]
5.1 Introduction 2
5.2 Purpose of BBBEE 10
5.3 Implications of the revised pillars of BBBEE 12
Ownership
Enterprise and supplier development (ESD) Max
Socio-economic development/Social responsibility 32
5.4 Impact of BBBEE 12
5.5 Actions regarded as non-compliance according to BBBEE 12
5.6 Conclusion 2
INSIGHT
Layout 2
Analysis/Interpretation 2 8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 230 2022/03/14 10:18:51

QUESTION 6
6.1 Introduction
– Solving problems requires businesses to apply creative and critical thinking skills. 
– Due to many challenges in complex business environments, the business must exactly know how to apply the
problem-solving steps to solve the problem. 
– Creative thinking is the ability to look at the same scenario/challenge and came up with original, new innovative
ideas/solutions. 
– The Delphi technique is a process used to arrive at a group opinion or decision by surveying a panel of experts. 
– Any other relevant introduction related to problem-solving steps/ways in which the business can create an
environment that promotes creative thinking/impact of Delphi technique/application of Delphi technique.
Any (2 × 1) (2)
6.2 Problems-solving steps
– Identify the problem.
– Define the problem. 
– Identify possible solutions to the problem. 
– Select the most appropriate alternative. 
– Formulate/Develop an action plan/strategy. 
– Implement the action plan. 
– Monitor the implementation of the solution/action plan. 
– Evaluate the solution/action plan. 
– Any other relevant answer related to the problem-solving steps.
Max (10)
6.3 Ways in which the business can create an environment that promotes creative thinking
– Management must always be willing to listen and respond enthusiastically to new ideas of staff members.
– The management must encourage all staff members to develop new or unique ideas.
– Management must make time for creating new ideas e.g. workshops where staff members can brainstorm new
ideas/solutions.
– Make it easy for suggesting new ideas with suggestions boxes in the business.
– Train staff members on innovative techniques like mind-mapping.
– Organise job swopping with other businesses to learn from other more creative ways to handle situations.
– Introduce incentives for staff members who came up with useful creative ideas.
– Make sure that the working environment is free from distractions like high noise levels.
– Any other relevant answer related to ways in which the business can create an environment that promotes
creative thinking.
Max (12)
6.4 Impact of Delphi technique
– Businesses may use a group of experts without bringing them together.
– The experts will give the business clear ideas or solutions on how to improve on productivity and/or profitability.
– Information received from experts can be used to solve complex business problems.
– Experts may give honest, credible opinions as they do not have a direct or personal interest in the business.
– Conflict may be avoided especially if all employees are knowledgeable and well qualified.
– Dominating employees may not take over the process as they do not form part of the problem-solving process.
– It reduces noise levels in an office environment since there is no group discussion.
– Any other relevant answer related to the positives/advantages of the Delphi Technique.
AND/OR
– It is an expensive technique to use due to high administrative costs.
– This method may be time consuming and complicated to analyse data received from experts and set new
questionnaires.
– Not all experts are willing or interested to give feedback or to complete questionnaires.
– If the experts are not well chosen some might not have an in-depth knowledge of certain topics.
BS Grade 12 TG.indb 231 2022/03/14 10:18:51

– Experts’ suggestions may not be valued by some employees, so consensus may not be reached.
– Any other relevant answer related to the negatives/disadvantages of the Delphi technique.
Max (12)
6.5 Application of the Delphi technique to solve complex problems
– The business must invite a panel of experts to research the challenge of the business.
– Experts do not have to be in one place and will be contacted individually.
– Design a questionnaire consisting of questions to get information from the experts regarding the challenge of
the business.
– Request the panel to individually respond to the questionnaire.
– Summarise the responses from the experts in a feedback report.
– Send the feedback report and if necessary develop a second set of questions/questionnaire based on the feedback
report to the panel members.
– Request panel members to provide further input/ideas on how to solve the challenge of the business.
– If necessary, send a third questionnaire based on previous feedback from the second round.
– Finally, the business will summarise all the feedback from the experts in a report.
– Based on the report, the business should choose the best solution/proposal after reaching consensus.
– Any other relevant answer related to how the business can apply the Delphi Technique to solve complex
business problems.
Max (12)
6.6 Conclusion
– Constant changes in the various business environments impact on business operations and so they need to adapt to
it quickly and make quick/creative decisions.
– The problem-solving steps is a systematic approach to solve/address business problems.
– Creative thinking can help to solve business problems successfully.
– Businesses must know how to deal with problems that arise.
– The Delphi technique is a popular problem-solving technique that can be used to gain expert insight into complex
problems by businesses who can afford to apply this technique. 
– Any other relevant conclusion related to problem-solving steps/ways in which the business can create an
environment that promotes creative thinking/impact of Delphi technique/application of Delphi technique.
(Any 1 × 2) (2)
[40]
6.1 Introduction 2
6.2 Problem-solving steps 10
6.3 Ways in which the business can create an environment that 12
promotes creative thinking Max
32
6.4 Impact of Delphi technique 12
6.5 Application of the Delphi technique to solve complex problems 12
6.6 Conclusion 2
INSIGHT
Layout 2
Analysis/Interpretation 2 8
Synthesis 2
TOTAL MARKS 40
TOTAL SECTION C: 40
GRAND TOTAL: 100
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Term 2
Exemplar
GRADE 12
Business Studies
MAY 202_
PRESENTATION: MARKING GUIDELINES

Marks: 50
NOTE TO TEACHERS
1. This is an individual activity and it is your responsibility to explain the task and the rubric to the learners before giving it
to them.
2. The task must be marked on the written task of the learner and marks must be indicated on the rubric.
3. Use the suggested marking guidelines, but also consider answers given to them by business owners/managers.
4. Explain to learners the expectations for the visual part of the task, e.g. handling of notes, eye contact with the class,
confidence; etc.
5. Learners’ presentation in class must be marked according to the requirements of the rubric.
6. There must be strict adherence of the dates of administering the tasks, this is non-negotiable.
PART 1
1.1 Examples of short-term insurance and long-term insurance
Short-term insurance
– Property insurance
– Money in transit
– Theft
– Burglary
– Fire
– Storms/Wind/Hail/Rain
– Any other relevant answer related to short term insurance.
NOTE: Mark first THREE (3) only.
Long-term insurance
– Endowment policy
– Life cover policy/Life insurance
– Retirement annuity/Pension fund/Provident fund
– Funeral insurance
BS Grade 12 TG.indb 233 2022/03/14 10:18:51

– Health insurance/Medical aid
– Trauma insurance
– Disability policy
– Any other relevant answer related to long term insurance
NOTE: Mark first TWO (2) only.
Max (5)
1.2 Advantages of insurance for the business
– The insured do not have to bear the risk of losses/damages to assets/possessions.
– Taking over the risk by the insurer from the insured is linked to certain terms and conditions stipulated in the
insurance contract.
– The businesses are protected from damages/losses incurred due to natural disasters.
– The businesses are protected from damages/losses incurred due to theft/burglary of assets/possessions.
– The businesses will be compensated for insurable losses of assets/possessions caused by fire.
– Businesses are protected against the loss of earnings, due to strikes by employees
– Businesses are protected against deceitful/dishonest employees.
– A businessman may insure the life of a business partner and receive compensation on his/her death to prevent the
loss of capital.
– Businesses may insure the lives of debtors to protect the businesses against losses due to death of a debtor.
– Any other relevant answer related to advantages of insurance for the business.
NOTE: Mark first FIVE (5) only.
Max (5)
1.3 The role of personal attitude in successful leadership
– Exceptional leaders will ensure that the environment at work is filled with a positive attitude coming from him/her.
– A positive attitude from the leader may have a positive effect on the employees, resulting in increased motivation
levels.
– A negative attitude from the leader may have the converse effect on employees.
– It is important that employees see within the leader, the type of behaviour they’re required to adopt and display at
the work place.
– Successful leaders allocate task/responsibilities to employees based on their knowledge of the employees’ skills/
abilities.
– Leader should be enthusiastic in his engagement with employees because it develops confidence within the leader.
– Successful leaders have a continuing desire to work towards and achieve more professional success.
– Leaders with a positive attitude constantly seek better/improved techniques to enhance performances.
NOTE: Take other wording which the manager/owner used also into consideration.
Max (5)
1.4 Ways in which the owner/manager deals with difficult people/personalities
Type of
Strategy to deal with a Personality
Personality
Listen to the complaints but don’t acknowledge them by nodding your head.
Complainer Interrupt the complainer after a while and proceed with strategies to deal with the issues
raised.
Suggest alternative approaches and guide the employee through the alternatives
Indecisiveness Highlight the importance of decision making and the consequences of delaying thereof.
Assist the employee with the decisions and affirm the employee.
Be firm with the employee and don’t allow him/her to let them make promises that they
Over-agree cannot keep.
Monitor the progress of duties assigned to the employee.
Listen to the employee, but do not agree with him/her.
Negativity
Allow the employee to express his/her views, but do not own their negativity.
BS Grade 12 TG.indb 234 2022/03/14 10:18:51

Type of
Strategy to deal with a Personality
Personality
Listen to the employee, but let him/her know that you are in control of the situation.
Let him/her know that you value their inputs, but that you’ll also consider other
Expert
alternatives.
Refrain from attacking their views, which will draw you into a confrontation with him/her.
Give the employee sufficient time to express his/her views on the issues.
Do not use the delay in responding by the employee to express your views.
Quiet
Use open ended questions to get a meaningful response from the employee.
Affirm the employee, but acknowledging the inputs provided.
Provide the employee with sufficient time to express himself/herself.
Aggressive Refrain from attacking their views, that will draw you into a confrontation with him/her.
Protect other employees from being intimidated by the employee.
1.5 Leadership style and positive impact of style
NOTE: 1. The learner can state here the leadership style which he/she identified. Use the impact
of the identified leadership style.
2. The chosen leadership style must link with the advantages explained by the learner.
Impact of the democratic leadership style
– The leaders do not have to rely on their own knowledge/skills to solve complex problems.
– Leaders may invite employees to participate in the decision-making process and benefit from their experiences/expertise.
– Employees contribute various/innovative ideas that may benefit the organisation and lead to improved production
techniques.
– Employees feel empowered/motivated, resulting in increased productivity levels.
– Regular communication between leaders and employees, leads to improved decision making.
Impact of the autocratic leadership style

– The leader is in a position to take quick decisions, without consulting employees.
– The leader has certainty that decisions will be made timeously, without delays/work gets done on schedule.
– There is no uncertainty regarding the source of instructions, which comes directly from the leader.
– Strict monitoring/control of production processes by the leader ensures quality products and services.
– Clear/Consistent direction from the leader, provides certainty to new employees.
– The large workforce in certain business makes it impractical to meet/consult with employees.
– Concise/Clear guidance could be given to newly appointed/inexperienced staff.
Impact of the laisses-faire/free reign leadership style

– Employees are trusted and given the responsibility of making decisions in areas of their own expertise
– Employees don’t need to consult the leader, when making decisions which may benefit the organisation.
– Motivation levels of employees increases, because the leader recognises their abilities/ skills to make decisions.
– Productivity levels of the organisation could increase significantly because employees feel valued/appreciated.
– Employees experience personal growth/development as they are allowed to make decisions on their own.
– The leadership skills of individual employees may develop as they interact with other employees in decision making.
The impact of the charismatic leadership style

– Leader communicates the vision/goals of the organisation in a concise/clear manner, that inspire confidence
amongst employees.
– Employees are inspired by the energy/passion of the charismatic leader.
– Employees are motivated to exceed their own expectations and overcome their own fears.
– Employees are made to feel valued/appreciated, which encourage them to worker harder and improve productivity levels.
BS Grade 12 TG.indb 235 2022/03/14 10:18:51

The impact of the transactional leadership style
– Linking rewards to targets encourages workers to work effectively/efficiently
– Incentives offered to employees who exceed targets increases the productivity levels of workers.
– Other employees are encouraged to work harder if they see fellow employees getting incentives for meeting/
exceeding targets
– Achieving the organisations goals become easier because workers feel valued/appreciated.
– Employees are given targets and that they know the targets they need to work towards.
– Employees are aware of the punishment, should targets not be met.
PART 2
2.1 Challenges in the three business environments
Business Sector (2.1.1) Challenges (2.1.2) Business Environment (2.1.3)
Primary sector 1. The employees of Moo Cattle 1. Micro
Farm often arrive late to work
and do not meet daily targets.
2. MCF buys their ingredients 2. Market
from Bathang Lucerne who is
sometimes out of stock.
NOTE: 1. Award marks for the challenge, even if the business environment is incorrect.
2. The business environment must link with the challenge.
3. Only challenges from the scenario must be marked.
Max (5)
2.2 Characteristics for successful team performance
– Team members share a common goal that every team member works towards achieving.
– A group of values are shared by team members and group decisions are implemented as a collective.
– Teams value the contributions of individual members and consensus are reached should differences exist.
– The team environment is characterised by mutual trust/respect for each other.
– Conflict is addressed immediately and team members feel free to communicate with one another.
– Meeting deadlines are important for team to achieve its goals and team member’s takes responsibility for such deadlines.
– The needs of individual team members are not neglected by the team.
– The relationships between individual teams members are nurtured/encouraged.
– Any other relevant answer related to the characteristics of successful team performance.
NOTE: Mark the first FIVE (5) only. Max (5)
2.3 Correct procedure to deal with grievances in the workplace

– The complainant must verbally report the grievance to his/her supervisor.
– The supervisor must resolve the grievance within 3 – 5 days.
– If the supervisor be unable to resolve the grievance, the complainant may take the grievance to the manager of
the supervisor.
– The grievance forwarded to the manager of the supervisor must be in writing.
– The manager of the supervisor provides the complainant with a written reply in response to the written grievance.
– The manager must invite all parties to the grievance to a meeting.
– A record of the meeting must be recorded in the minutes thereof and decisions made must be recorded on the
formal grievance form.
– Should the employee not be satisfied with the outcome of the meeting, he/she could refer the matter to the highest
level of management.
– Top management should arrange a meeting with all relevant parties concerned.
– Minutes of this meeting should be recorded, and the outcome must be recorded on the formal grievance form.
– Should the employee still not be satisfied, he/she may refer the matter to the CCMA who will make a final decision
on the matter.
– The matter can be referred to Labour Court on appeal if the employee is not satisfied with the decision taken by the CCMA.
NOTE: The sequence of the procedure do not have to be given in order.
Max (5)
BS Grade 12 TG.indb 236 2022/03/14 10:18:51

Term 2
Exemplar
GRADE 12
Business Studies
JUNE 202_
JUNE EXAMINATION PAPER 1: MARKING GUIDELINES

Marks: 150 Time: 2 Hours
SECTION A (COMPULSORY)
QUESTION 1
1.1 Multiple choice
1.1.1 A
1.1.2 A
1.1.3 C
1.1.4 B
1.1.5 A (5 × 2) (10)
1.2 Complete the statement

1.2.1 placement
1.2.2 double
1.2.3 Consumer Protection
1.2.4 piecemeal
1.2.5 substitute (5 × 2) (10)
1.3 Matching Columns

1.3.1 E
1.3.2 I
1.3.3 B
1.3.4 H
1.3.5 G (5 × 2) (10)
TOTAL SECTION A: 30
Breakdown of marks
Question 1 Marks
1.1 10
1.2 10
1.3 10
TOTAL 30
BS Grade 12 TG.indb 237 2022/03/14 10:18:51

SECTION B
2.1 BBBEE pillars
– Management control
– Ownership
– Enterprise and supplier development (ESD) 
– Skills Development
– Social responsibility/Socio economic development
(4 × 1) (4)
2.2 Consumer rights
2.2.1 Right to choose 
2.2.2 Right to fair and honest dealings 
2.2.3 Right to fair/responsible marketing/promotion 
(3 × 2) (6)
2.3
BUSINESS ENVIRONMENTS EXTENT OF CONTROL
1. Micro environment  Full control 
2. Market environment  Limited/Partial/Less/Some control 
3. Macro environment  No control 
NOTE: 1. The extent of control must be linked to the environment.
2. Do not award marks for the extent of control if the business environment is
not mentioned.
3. Order may be different.
Max (6)
2.4 Role of SETAs in supporting the SDA
– Registers various learnerships and learning programmes. 
– Promotes and establishes various learnerships. 
– Approves the workplace skills plans and annual training reports submitted by businesses. 
– Develops skills plans that are in line with the aims of the National Skills Development Strategy (NSDS). 
– Develops/builds skills development plans for the various economic sectors. 
– Promotes learnerships and learning programmes by correctly identifying the best workplaces for practical work
experience. 
– Any other relevant answer related to the role of SETAs in supporting the SDA.
Max (6)
2.5 SWOT ANALYSIS FOR BMI
2.5.1 SWOT Analysis from the scenario
STRENGTHS WEAKNESSES
Brendon Musical Instruments specialises in selling However, the business did not have sufficient
good quality musical instruments.  capital to invest in stock. 
The owners is a highly qualified musician with (1)
knowledge of all instruments. 
(Any 1 x1) (1)
OPPORTUNITIES THREATS
John Sabena is willing to invest venture capital in The crime rate in the area is very high. 
the music industry.  (1)
(1)
(4 × 1) (4)
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2.5.2 Strategies for high crime rate in the area.
– Install security systems/hire more security to safeguard the business.
– Engage in CSR/CSI programmes that are aimed at reducing crime in the community. 
– Provide employment opportunities for local people /the community. 
– Relocate the business to other areas where the crime rate is minimal. 
– Work together with the Community Policing Forums (CPF). 
– Any other relevant strategy on how BMI may address the threat of the high crime area in which it operates.
(Any 1 × 2) (2)
NOTE: 1. Do not award marks for strategies that are not linked to the identified threats in
QUESTIONS 2.5.1.
2. Mark the FIRST strategy for the threat only.
2.6 Steps in strategy evaluation
– Examine/Assess the underlying basis of a business strategy. 
– Look forward and backwards into the implementation process. 
– Compare the expected performance with the actual performance. 
– Measure the business performance in order to determine the reasons for deviations and analyse these reasons. 
– Take corrective action so that deviations may be corrected. 
– Set specific dates for control and follow up. 
– Draw up a table/list of the advantages and disadvantages of a strategy. 
– Decide on the desired outcome. 
– Consider the impact of the strategic implementation in the internal and external environments of the business. 
– Any other relevant answer related to the steps in strategy evaluation.
NOTE: Mark steps in any order.
Max (6)
2.7 Ways to comply with Employment Equity Act
– Display a summary of the EEA in the business where it is visible to all employees. 
– Provide equal opportunities to all employees in the workplace. 
– Businesses should ensure that employees are paid equally for work of equal value. 
– Implement affirmative action measures in order to promote diversity in the workplace. 
– Compile employment equity plans that specifies how affirmative action will be implemented in the workplace. 
– The workplace must be representative of the demographics of the country at all levels. 
– Current employment policies/practices/ procedures must be restructured and evaluated to accommodate the various
designated groups. 
– Any other relevant answer related to the compliance of EEA.
Max (6)
[40]
Breakdown of marks
Question 2 Marks
2.1 4
2.2 6
2.3 6
2.4 6
2.5.1 4
2.5.2 2
2.6 6
2.7 6
TOTAL 40
BS Grade 12 TG.indb 239 2022/03/14 10:18:51

3.1 Sources of internal recruitment
– Internal e-mails/Intranet/websites to staff 
– Word of mouth 
– Business newsletters/circulars 
– Internal/management referrals 
– Office notice boards 
– Internal bulletins 
– Recommendation of current employees 
– Head hunting within the business/organisational database 
– Any other relevant answer related to sources of internal recruitment.
NOTE: Mark first SIX (6) only.
(6 × 1) (6)
3.2.1 Job analysis components of RRH
COMPONENTS MOTIVATIONS
1. Job description The receptionist will have to make bookings for
the guests and do placements in the different
rooms. 
2. Job specification Applicants must have a diploma in administration
management. 
2. Award marks for the correct job analysis components even if the quotes are
incomplete.
3. Do not award award marks for the motivation, if the job analysis components
were incorrectly identified.
Max (6)
3.3 Role of the interviewee during an interview
– Greet the interviewer by name with a solid handshake and a friendly smile. 
– Listen carefully to the questionsbefore responding. 
– Make eye contact and have good posture/body language. 
– Show confidence and have a positive attitude/be assertive. 
– Be inquisitive and show interest in the business. 
– Ask clarity seeking questions. 
– Show respect and treat the interview with its due importance. 
– Be honest about mistakes and explain how you dealt with it. 
– Know your strengths and weaknesses and be prepared to discuss it. 
– Thank the interviewer for the opportunity given to be part of the interviews. 
– Any other relevant answer related to the role of the interviewee.
Max (8)
3.4 Business functions
3.4.1 Purchases function
3.4.2 Public relations function
(2 × 2) (4)
3.5 Impact if TQM is poorly implemented
– Setting unrealistic deadlines that may not be achieved. 
– Employees may not be adequately/efficiently trained,  resulting in poor quality products. 
– Decline in productivity,  because of stoppages/delays. 
– Customers will have many alternatives to choose from and the impact could be devastating to businesses. 
– Investors might withdraw investment, if there is a decline in profits. 
BS Grade 12 TG.indb 240 2022/03/14 10:18:51

– Decline in sales,  as product returns from unhappy customers’ increase. 
– High staff turnover,  because of poor skills development/training. 
– Any other relevant answer related to the impact if TQM is poorly implemented.
Max (8)
3.6 How to apply PDCA model/cycle
– Plan – The business should identify the problem and develop a plan for improvement to processes and systems.
– Do – The business should implement the change on a small scale and implement the processes and systems as
planned. 
– Check/Analyse – Determine whether it made a difference and what needs to be improved. 
– Act as needed – Devise strategies and implement the improvement to meet the needs of the business. 
– Any other relevant answer related to the application of the PDCA model.
(4 × 2) (8)
[40]
Breakdown of marks
Question 3 Marks
3.1 6
3.2 6
3.3 8
3.4 4
3.5 8
3.6 8
TOTAL 40
QUESTION 4: MISCELLANEOUS TOPICS
BUSINESS ENVIRONMENTS
4.1 Leave provisions in the Basic Conditions of Employment Act
– Annual leave
– Sick leave
– Maternity leave
– Family responsibility leave
– Parental leave
NOTE: Mark first THREE (3) answers only.
(Any 3 × 1) (3)
4.2
Legislation
4.2.1 Compensation for Occupational Injuries and Diseases Amendment Act /COIDA Submax (2)
Motivation: AT requested Carol not to report the accident as they were not registered with the
Compensation Fund. Submax (1)
NOTE: 1. Award full marks for the identification of COIDA even if the quote is incomplete.
2. Do not award marks for the quote if the Act was incorrectly identified.
Max (3)
4.2.2 Penalties for non-compliance with COIDA
– Businesses that do not comply with COIDA may receive a compliance order from the Labour Court,  that
forces the business to comply with the COIDA. 
– Businesses who neglect to comply with COIDA may receive large fines for refusing to lodge claims and
may be even provided with a jail sentence/imprisonment, that is dependent on the severity of the non-
compliance. 
– Businesses can be forced to make large payments if they did not implement the necessary precautions to
reduce accidents/fatalities and to promote health and safety in the workplace. 
– Businesses may be forced to pay any recovery costs required by the compensation fund. 
– Employees may take the businesses to court for not registering with Commissioner of the Compensation
Fund. 
– Any other relevant answer related to the penalties for not complying COIDA.
Max (6)
BS Grade 12 TG.indb 241 2022/03/14 10:18:51

4.3
Application of Porter’s Five Forces model
4.3.1 Power of buyers
– A few powerful buyers are often able to dictate their terms/prices to the business.
– Assess how easy it is for buyers/customers to drive prices down/decrease prices. 
– Determine the number of buyers/the importance of each buyer to the business and the cost of switching to
other products. 
– Buyers buying in bulk can bargain/negotiate for prices in their favour. 
– Conduct market research to gather more information about its buyers/customers. 
– Any other relevant answer related to the application of Power of buyers.
Submax (4)
BUSINESS OPERATIONS
4.4 Examples of fringe benefits
– Medical Aid Fund/Health Insurance Fund 
– Pension Fund
– Provident Fund 
– Funeral benefits
– Car/Travel/Housing/Cell phone/Clothing allowance 
– Performance based incentives 
– Issuing of bonus shares 
– Staff discount/Free or low-cost meal/Canteen facilities 
– Any other relevant answer related to examples of fringe benefits.
(Any 4 × 1) (4)
4.5 Link between salary determination and BCEA
– The BCEA sets out conditions that ensure fair labour and human resources practices takes place within
the business. 
– According to the BCEA, businesses may use different remuneration methods to pay their employees. 
– Payment of salaries should be based on whether the employee is permanent or employed on a fixed contract. 
– Businesses are supposed to deduct income tax (PAYE) and other salary deductions from the employees’ taxable
salaries. 
– The BCEA outlines legalities of the employment contract, such as work hours/overtime, which may affect salary
determination. 
– The BCEA also regulates the minimum wage rates per sector and the business must therefore ensure that
remuneration reflected in the employment contract is not below minimum wages. 
– Any other relevant answer related to the link between salary determination and BCEA.
Max (6)
4.6 Meaning of TQM
– TQM is an integrated system/methodology/process applied throughout the organisation,  which helps to design/
produce/provide quality products/services to customers. 
– It is a thought revolution in management,  where the entire business is operated with customer orientation in all
business activities. 
– TQM enables businesses to continuously improve on the delivery of products/services in order to satisfy the needs
of customers.
– Management ensures that each employee is responsible/accountable for the quality of his/her work/actions. 
– Any other relevant answer related to the meaning of TQM.
Max (4)
4.7 Roles of quality circles
4.7.1 Role of quality circles from the scenario
– They requested quality circles to suggest solutions to management. 
– They were also requested to make recommendations for improving systems and processes in the workplace. 
(2)
BS Grade 12 TG.indb 242 2022/03/14 10:18:51

4.7.2 Other roles of quality circles
– Ensure that there is no duplication of activities/tasks in the workplace. 
– Improve the quality of products/services/productivity through regular reviews of quality processes. 
– Monitor/Reinforce strategies to improve the smooth running of business operations. 
– Reduce costs of redundancy in the long run. 
– Quality circles discuss ways of improving the quality of work/workmanship. 
– Contribute towards the improvement and development of the organisation. 
– Improve employees’ loyalty and commitment to the business and its goals. 
– Any other relevant answer related to the role of quality circles.
NOTE: Do not accept responses provided in QUESTION 4.7.1.
Max (4)
[40]
Breakdown of marks
Question 4 Marks
4.1 3
4.2.1 3
4.2.2 6
4.3.1 4
4.3.2 4
4.4 4
4.5 6
4.6 4
4.7.1 2
4.7.2 4
TOTAL 40
TOTAL: SECTION B: 80
SECTION C
5.1 Introduction
– Businesses need to identify, develop and implement business strategies to improve performance.
– Integration strategies enable businesses to solve challenges posed by the market environment. 
– The aim of strategy evaluation is to determine whether the chosen strategy will resolve the identified challenges. 
– PESTLE analysis helps the business to enhance its strength in the macro environment. 
– Any other relevant introduction related to the strategic management process/types of integration strategies/
advantages of diversification strategies/how businesses can deal with social and economic PESTLE factors.
(Any 2 × 1) (2)
Option 1
The business must:
– Have a clear vision, mission statement and measurable/realistic/achievable objectives in place. 
– Identify strengths/weaknesses/opportunities/threats by conducting environmental scanning/situational analysis. 
– Use available tools/methods for environmental scanning, which may include a SWOT analysis/Porter’s Five Forces
model/PESTLE analysis/industrial analysis tools.  
– Formulate alternative strategies to respond to business challenges. 
– Develop/create (an) action plan(s), including the tasks to be completed/deadlines to be met/resources to be
procured, etc. 
– Organise the business resources and motivate staff. 
– Implement selected strategies by communicating it effectively/efficiently/correctly to all stakeholders. 
– Continuously evaluate/monitor/assess/measure strategies to take corrective action. 
– Any other relevant answer related to the strategic management.
Max (10)
BS Grade 12 TG.indb 243 2022/03/14 10:18:51

OR
Option 2
The business must:
– Review/Analyse/Re-examine the vision/mission statement. 
– Conduct (an) environmental analysis/environmental scanning using models such as SWOT analysis/Porter’s Five
Forces model/PESTLE analysis. 
– Formulate a strategy such as a(n) integration/intensive/diversification/defensive strategy. 
– Implement a strategy, using a template such as an action plan. 
– Control/Evaluate/Monitor the implemented strategy to identify gaps/deviations/differences in implementation. 
– Take corrective action to ensure goals/objectives/aims are met. 
– Any other relevant answer related to strategic management.
Max (10)
5.3 Types of integration strategies
• The business combines/merges with/takes over its distributors down the supply
chain/production chain. 
• It involves the expansion of business activities to gain control over the
distribution of products/services. 
• The business takes over the distribution system and sells products/services directly
Forward vertical to consumers/customers. 
integration 
• The business merges with businesses that were once their customers, while still
maintaining control of the initial/primary business activities. 
• Any other relevant answer related to the explanation of forward vertical
integration.
Submax (2)
• The business combines with/merges/takes over its suppliers up the supply chain/
production chain. 
• This is done to decrease the business’s dependency on suppliers. 
• The business expands its role to fulfil activities/tasks that were formerly/
Backward vertical previously completed by suppliers. 
integration  • It involves buying over/merging with another business that supplies products/
services to the business. 
• Any other relevant answer related to the explanation of backward vertical
integration.
Submax (2)
• The business takes control of/incorporates/merges with other businesses in the
same/related industry which produce/sell the same/similar products. 
• The aim is to reduce the threat of competition/substitute products/services. 
• The business is able to strengthen/expand their market share/position and
Horizontal enhance production/ distribution. 
integration 
• It is the acquisition/takeover of a related business that operates at the same level
of the supply chain in the industry. 
• Any other relevant answer related to the explanation of horizontal integration.
Submax (2)
Max (12)
2. The order may be different.
– Increase in the number of products being sold to existing/new customers/consumers 
BS Grade 12 TG.indb 244 2022/03/14 10:18:51

– Reduce the risk of relying only on one product for sales/revenue/income. 
– Retain its competitive advantage by meeting the needs of current/new customers/expanding into new unexplored
markets. 
– Remain relevant/functional/operational in the context of ever changing business environments. 
– Any other relevant answer related to the effectiveness of diversification strategies.
Max (12)
5.5 Ways to apply PESTLE factors

Technological
– Conduct continuous research on the latest available technology/equipment in the market.
– Train existing/appoint new employees to maintain/use new equipment/technology. 
– Compare prices/Select suitable suppliers for new equipment/machinery/technology at reasonable prices. 
– Businesses must be geared for online trading/e-commerce. 
– Any other relevant answer related to ways in which the business can deal with challenges posed by technological
PESTLE factors.
Max (6)
Economic
– Consider decreasing profit margins rather than increasing product prices. 
– Borrow money from financial institutions when interest rates are favourable
– Consider exchange rates when trading with other countries/Trade with countries with a favourable exchange rate. 
– Provide shares at competitive/lower prices to attract more foreign direct investment. 
– Any other relevant answer related to ways in which the business can deal with challenges posed by economic
PESTLE factors.
Max (6)
5.6 Conclusion
– When the business implements the integration and diversification strategies correctly, it usually results in growth
and continuous improvement. 
– The application of strategies for PESTLE factors will strengthen the position of the business in the macro
environment. 
– Businesses must continuously evaluate strategies in order to change/adapt to the demands of their markets. 
– Any other relevant conclusion related to the strategic management process/types of integration strategies/
advantages of diversification strategies/how businesses can deal with social and economic PESTLE factors.
(Any 1 × 2) (2)

5.1 Introduction 2
5.2 Strategic management process 10
5.3 Integration strategies 12 Max
5.4 Advantages of diversification strategies 12 32
5.5 Ways to deal with PESTLE factors 12
5.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
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6.1 Introduction
– Quality is the ability of a product/service to satisfy specific needs of consumers.
– Total quality relates to products that totally satisfy consumers’ needs and expectations in every respect on a
continuous basis. 
– Quality management should not just be an inspection process, but become part of the culture of the business. 
– TQM helps to design, produce/provide quality products at a lower cost. 
– Any other relevant introduction related to the advantages of a good quality management system/quality indicators
of the production function/impact of continuous skills development on large businesses/ways in which TQM can
reduce the cost of quality.
(Any 2 × 1) (2)
6.2 Advantages of a good quality management system
– Effective customer services are rendered, resulting in increased customer satisfaction. 
– Regular training will continuously improve the quality of employees’ skills/knowledge/competencies. 
– Improves the employee morale/productivity within the businesses. 
– Any other relevant answer related to the advantages of a good quality management system.
Max (12)
6.3 Quality indicators for production function
– The production manager should provide/ensure high quality products/services according to specifications. 
– The production/operating processes of a business is done through proper/effective production planning/control. 
– The production manager should aim to produce products at the lowest possible cost to ensure profit maximisation. 
– The production manager should communicate the roles and responsibilities to the production workers. 
– Products meet customers’ requirements by being safe/reliable/durable. 
– Monitor processes and find/determine the root causes of production problems. 
– Implement quality control systems to ensure that quality products are consistently being produced. 
– Any other relevant answer related to quality indicators for production function.
Max (12)
6.4 Impact of continuous skills development on large businesses
– Large businesses have a human resources department dedicated to skills training and development. 
– Human resources experts ensure that training programmes are relevant/applicable to increased customer
satisfaction. 
– Ability to afford specialised/skilled employees. 
– May conduct skills audits to establish the competency/education levels of staff performing work which could
affect the quality of products/services/processes positively. 
– May be able to hire qualified trainers to train employees on a regular basis. 
– Any other relevant answer related to the advantages of continuous skills development.
AND/OR
– Poor communication systems in large businesses may prevent effective training from taking place. 
– Trained employees may leave for better jobs after they gained more skills. 
– Demotivates employees if they do not receive recognition/acknowledgement for training. 
– Employees may not be aware of the level of competency they should meet to achieve their targets. 
– It may be difficult to monitor/evaluate the effectiveness of training. 
– Any other relevant answer related to the disadvantages of continuous skills development.
Max (12)
BS Grade 12 TG.indb 246 2022/03/14 10:18:51

6.5 Ways that TQM can reduce the cost of quality
– Any other relevant answer related to ways TQM can reduce cost of quality.
Max (10)
6.6 Conclusion
– Quality is important for a business to be sustainable. 
– All business functions contribute to the success or failure of a business and should therefore have quality control. 
– It is important that businesses have proper systems for managing quality e.g. TQM which reduces cost and increases
profits. 
– Any other relevant conclusion related to the advantages of a good quality management system/quality indicators of
the production function/impact of continuous skills development on large businesses/ways in which TQM can reduce
the cost of quality.
(Any 1 × 2) (2)
6.1 Introduction 2
6.2 Advantages of a good quality management system. 12
6.3 Quality indicators for the production function. 12 Max
6.4 Impact of continuous skills development 12 32
6.5 Ways TQM can reduce cost of quality 10
6.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 247 2022/03/14 10:18:51

Term 2
Exemplar
GRADE 12
Business Studies
JUNE 202_
JUNE EXAMINATION PAPER 2: MARKING GUIDELINES

Marks: 150 Time: 2 Hours
SECTION A
QUESTION 1
1.1 Multiple choice
1.1.1 C
1.1.2 B
1.1.3 C
1.1.4 C
1.1.5 B (5 × 2) (10)
1.2 Complete the statement.

1.2.1 nominal group
1.2.2 transformational
1.2.3 indemnify
1.2.4 unfair advertising
1.2.5 debentures (5 × 2) (10)

1.3.1 H
1.3.2 F
1.3.3 G
1.3.4 E
1.3.5 B (5 × 2) (10)
TOTAL: SECTION A: 30
Breakdown of marks
Question 1 Marks
1.1 10
1.2 10
1.3 10
TOTAL 30
BS Grade 12 TG.indb 248 2022/03/14 10:18:51

SECTION B
QUESTION 2: BUSINESS VENTURES
2.1 Examples of short term insurance
– Property insurance
– Money in transit
– Theft
– Burglary
– Fire
– Storms/Wind/Hail/Rain
– Any other relevant answer related to short term insurance.
(2 × 1) (2)
2.2.1 Insurable interest
2.2.2 Utmost good faith
(2 × 2) (4)
2.3 Differences between insurance and assurance
Insurance Assurance
The principle of indemnity is applicable in the event The principle of security/certainty is applicable in
of a loss/damage occurring.  the event of an occurrence of an insured event. 
Provides cover for a risk that may occur.  Provides cover for a risk that will occur. 
Applicable to short-term insurance Applicable to long-term insurance
The insured pays a premium to the insurer and the The insured pays a premium to the insurer and the
insurer agrees to compensate the insured in the event insurer agrees to pay a specified amount of money
of damage/loss occurring.  after a fixed period has elapsed or on the death of
Any other relevant answer related to the explanation the insured. 
of insurance. Any other relevant answer related to the explanation
of assurance.
2. The distinctions do not have to link but must be clear.
3. Award a maximum of TWO (2) marks it the distinction is not clear.
Max (4)
2.4.1 Leadership style from the scenario
Democratic leadership style (2)
2.4.2 Situations in which BP can apply the democratic leadership style
– The leader knows his/her limitations and is open to new ideas/innovative thinking. 
– The leader requires a different perspective on an issue in which experienced employees could provide
valuable information. 
– Employees are experienced/experts in their chosen fields of occupation. 
– Teamwork is promoted and the inputs of employees are valued/appreciated. 
– Any other relevant answer related to application of democratic leadership style.
Max (6)
2.5 The role of personal attitude in successful leadership
– Positive attitude releases leadership potential. 
– A leader’s good/bad attitude can influence the success/failure of the business. 
– Leaders must know their strengths and weaknesses to apply their leadership styles effectively. 
– Great leaders understand that the right attitude will set the right atmosphere. 
– Leaders’ attitude may influence employees’/teams’ thoughts/behaviour. 
– Leaders should model the behaviour that they want to see in team members. 
– Successful leaders consider the abilities/skills of team members to allocate tasks/roles effectively. 
BS Grade 12 TG.indb 249 2022/03/14 10:18:51

– Enthusiasm produces confidence in a leader. 
– A positive attitude is critical for good leadership because good leaders will stay with the task regardless of
difficulties/challenges. 
– Successful employees and leaders have a constant desire to work and achieve personal/professional success. 
– Leaders with a positive attitude know that there is always more to learn/space to grow. 
Max (8)
2.6 Description and calculation of interest
2.6.1 The meaning of compound interest
– Interest is calculated in every period on original/principal amount plus interest. 
– Interest is added to the original/principal amount and interest is earned on interest for each defined
period. 
– As interest is added to the investment,  the capital increases. 
– Any other relevant answer related to the meaning of compound interest.
Max (4)
2.6.2 Calculation of interest
Option 1:
Year 1: R 100 000 × 0.12 × 1 = R 12 000 
Year 2: (R 100 000 + 12 000) × 0.12 × 1 = R 13 440
Year 3: (112 000 = 13440) × 0.12 = RR15 052.80
Total interest = R 12 000 + R 13 440 + R 15 052.80 = R40 492.80
OR
Option 2:
Interest = P × (1 + i)n – P = R 100 000 × (1+0.12)3 – R 100 000
= R 100 000 × (1.12)3 – R 100 000
= R40 492.80
NOTE: 1. Allocate the full FOUR (4) marks if the answer is correct and no workings are shown.
2. If workings were shown correctly, but final answer is wrong, award a maximum of
THREE (3) marks.
3. If answer is incorrect, award a maximum of ONE mark for the understanding of
concept/formulae and method.
4. If there are no workings shown and the answer is incorrect, allocate a ZERO mark.
Max (4)
2.7 Factors to consider when making an investment decision
2.7.1 Return on investment
– Refers to the amount of money the investor gets in addition to the original investment amount. 
– The additional amount after tax expressed as a percentage of the original investment amount. 
– Will be higher if the risks involved in the investment is high. 
– Will be lower if the risk involved in the investment is low. 
– The return on investment after deduction of tax, should be higher than the general increase. 
– The net after-tax return should be higher than the rate of the general increases in prices. 
– Any other relevant answer related to the return on investment as a factor to consider when making an
investment decision.
Max (4)
2.7.2 Risk
– The risk linked to investment opportunities refers to the doubt that exist regarding the extent of any gains/
losses that the investor could make. 
– Different investment opportunities have different risks linked to them. 
– Certain shares do have a low risk over an extended investment period. 
– Higher return on investment could be made with other shares that may be subjected higher risks. 
– The investor in ordinary shares have a higher risk linked to the investment because he/she will lose his/her
full investment / portion of his investment should the company be declared bankrupt. 
BS Grade 12 TG.indb 250 2022/03/14 10:18:51

– The investment in preference shares have a lower risk linked to his investment, because the investor will
have rights to the company’s assets should it be declared insolvent. 
– Any other relevant answer related to the risk as a factor to consider when making an investment decision.
Max (4)
Breakdown of marks
Question 2 Marks
2.1 2
2.2 4
2.3 4
2.4.1 2
2.4.2 6
2.5 6
2.6.1 4
2.6.2 4
2.7.1 4
2.7.2 4
TOTAL 40
3.1 Examples of ethical behaviour
– The business is telling the truth during a public relation crisis to overcome the business’s issue. 
– Companies keep promises to their employees, partners, and customers. 
– The business shows loyalty when they make decisions that will also benefit their staff, partners, investors, and
customers. 
– The business shows fairness when it exercises its power justly to all its stakeholders. 
– The business operates within the law and other restrictions. 
– They ensure that the environment is not polluted in their production process. 
– Not engaging in illegal business practices like price fixing. 
– They do not make use of child labour. 
– Any other relevant answer related to examples of ethical behaviour.
(2 × 2) (4)
3.2 Differences between decision-making and problem-solving
It is often done by one person/ or senior Problems can be solved by a group/ team or an
management who makes it authoritarian.  individual team member which make it more
inclusive
Considers various alternatives before deciding on They will generate/identify alternative solutions and
the best one.  evaluate it critically. 
This process is part of the problem-solving cycle as This process of analysing a situation will identify
decisions need to be taken in each step.  strategies to bring about change. 
Any other relevant answer related to the explanation Any other relevant answer related to the explanation
of decision-making of problem-solving
NOTE: 1. Differences do not have to be in tabular form.
2. The differences do not have to link but they must be clear.
3. Award a maximum of TWO (2) marks it the distinction is not clear. /Mark either
decision-making or problem-solving.
Max (4)
BS Grade 12 TG.indb 251 2022/03/14 10:18:51

3.3 Problem-solving techniques
3.3.1 Problem-solving technique from the scenario
Delphi technique (2)
3.3.2 Application of Delphi technique
– The business must invite a panel of experts to research the challenge of the business. 
– Experts do not have to be in one place and will be contacted individually. 
– The business will design a questionnaire consisting of questions to get information from the experts
regarding the challenge of the business. 
– They will request the panel to individually respond to the questionnaire
– The business will summarise the responses from the experts in a feedback report. 
– The business will send the feedback report and if necessary, develop a second set of questions/questionnaire
based on the feedback report to the panel members. 
– They will request panel members to provide further input/ideas on how to solve the challenge of
the business. 
– If necessary, send a third questionnaire based on previous feedback from the second round. 
– Finally, the business will summarise all the feedback from the experts in a report. 
– Based on the report the business should choose the best solution/proposal after reaching consensus. 
– Any other relevant answer related to the application of the Delphi technique.
Max (6)
3.4 Application of King Code principles
3.4.1 Transparency
– Decisions/Actions must be clear to all stakeholders. 
– Staffing and other processes should be open and transparent. 
– Employees/Shareholders/Directors should be aware of the employment policies of the business. 
– Auditing and other reports must be accurate/ available to shareholders/employees.
– Regular audits should be done to determine the effectiveness of the business. 
– Business deals should be conducted openly so that there is no hint/sign of dishonesty/corruption. 
– Businesses should give details of shareholders’ voting rights to them before/at the Annual General
Meeting (AGM). 
– The board of directors must report on both the negative and positive impact of the business on the
community/environment. 
– The board should ensure that the company’s ethics are effectively implemented. 
– Any other relevant answer related to the application of transparency as a King Code principle.
Max (4)
3.4.2 Responsibility
– The business/ board should develop and implement programmes that should be aimed at protecting the
communities in which they operate. 
– The business/ board should develop remedial programmes to protect the environment for example, reduce
air and water pollution. 
– Any other relevant answer related to the application of responsibility as a King Code principle.
Max (4)
3.5 Positive impact of brainstorming
– Better or unique solutions and/or ideas are developed through collective contributions and will give the business a
competitive advantage. 
– This process enables the business to solve complex business problems. 
– Productivity increases if the business generates ideas which utilises time and money more effectively. 
– Employees are motivated as they are allowed to contribute to problem solving. 
– Managers will be better leaders as they will be able to manage change creatively. 
– Creativity may lead to new inventions which improves the general standard of living. 
– Any other relevant answer related to the positive impact of brainstorming.
Max (6)
BS Grade 12 TG.indb 252 2022/03/14 10:18:51

3.6 Correct procedure to deal with grievances in the workplace.
– The complainant must verbally report the grievance to his/her supervisor. 
– The supervisor must resolve the grievance within 3 – 5 days. 
– If the supervisor be unable to resolve the grievance, the complainant may take the grievance to the manager of the
supervisor. 
– The grievance forwarded to the manager of the supervisor must be in writing. 
– The manager of the supervisor provides the complainant with a written reply in response to the written
grievance. 
– The manager must invite all parties to the grievance to a meeting. 
– A record of the meeting must be recorded in the minutes thereof and decisions made must be recorded on the
formal grievance form. 
– Should the employee not be satisfied with the outcome of the meeting, he/she could refer the matter to the highest
level of management. 
– Top management should arrange a meeting with all relevant parties concerned. 
– Minutes of this meeting should be recorded, and the outcome must be recorded on the formal grievance form. 
– Should the employee still not be satisfied, he/she may refer the matter to the CCMA who will make a final decision
on the matter. 
– The matter can be referred to Labour Court on appeal if the employee is not satisfied with the decision taken by the
CCMA. 
– Any other relevant answer related to the correct procedure to deal with grievances.
Max (6)
3.7 Ways to deal with pricing of goods in rural areas
– A business may lobby with other businesses in the area to convince government to improve infrastructure in the
rural area.
– Charge fair/market related prices for goods and services.
– Avoid unethical business practices to attract customer loyalty.
– Investigate cost-effective ways of transporting products/Hire a large truck to combine deliveries to shop-owners in
the same area.
– Work together with suppliers to share delivery costs to remote rural areas.
– Any other relevant answer related to ways to deal with pricing in rural areas.
Max (4)
Breakdown of marks
Question 3 Marks
3.1 4
3.2 4
3.3.1 2
3.3.2 6
3.4.1 4
3.4.2 4
3.5 6
3.6 6
3.7 4
TOTAL 40
BS Grade 12 TG.indb 253 2022/03/14 10:18:52

BUSINESS VENTURES
4.1 Identify insurance concepts from statements
4.1.1 Reinstatement (2)
4.1.2 Excess (2)
4.1.3 Average clause (2)
4.2 Leadership theories
LEADERSHIP THEORIES MOTIVATIONS
1. Situational leadership theory The management of BBB uses different leadership styles
to manage different circumstances. 
2. Transformational theory The passion and personality of their supervisors inspire
employees to adjust appropriately during times of
drastic change. 
3. Leaders and followers BBB realises the importance of leading by example and
fosters strong work relationships with subordinates. 
NOTE: 1. Correct terminology must be used to identify leadership theory.
2. Do not award marks for motivation if the leadership theories were incorrectly
identified.
Max (9)
4.3 Meaning of liquidity as factor to consider when making an investment
– Liquidity refers to the speed with which an investment can be converted into cash. 
– The easier it is to convert an investment into cash,  the more liquid the investment. 
– The more difficult it is for an investment to be converted into cash, the less liquid the investment
– An amount should be invested in a type of investment that can easily be converted to cash. 
– Example: an investment in a savings account will be easier to convert into cash than an investment in a
fixed property. 
– Any other relevant answer related to the meaning of liquidity as a factor to consider when making an investment.
Max (4)
BUSINESS ROLES
4.4. Causes of conflict in the workplace
– Differences in background
– Ignoring procedures/rules
– Lack of cooperation
– Personality differences
– Lack of recognition
– Unfair workloads
– Unrealistic deadlines
– Lack of proper communication
– Any other relevant answer related to the causes of conflict in the workplace.
(3 × 1) (3)
BS Grade 12 TG.indb 254 2022/03/14 10:18:52

4.5.1 Identification of unprofessional business practices
1. Sexual harassment.  Roberto promised to appoint Jamila as the new secretary
if she agrees to have a relationship with him
2. Unauthorised of workplace recourses.  Andrew the truck driver frequently uses the business
truck for private trips. 
3. Unauthorised of workplace funds.  Adie often uses the credit card of the business for
personal expenses without consent of Roberto. 
NOTE: 1. Correct terminology must be used to identify unprofessional business practice.
2. Do not award marks for motivation if the practice was not correctly identified.
Max (9)
4.6 Application of Force field analysis
– Describe the current situation or problem and the desired situation and write it in the middle or on top for everyone
to see. 
– List all driving/pros and restraining/cons forces that will support and resist change. 
– Allocate a score to each force using a numerical scale, where 1 is weak and 5 is strong. 
– Weigh up the positives and negatives then decide if the project is viable. 
– Choose the force with the highest score as the solution. 
– If the project is viable, find ways to increase the forces for change. 
– Identify priorities and develop an action plan. 
– Any other relevant answer related to the application of Force field analysis.
Max (8)
Breakdown of marks
Question 4 Marks
4.1 6
4.2 9
4.3 4
4.4 4
4.5 9
4.6 8
TOTAL 40
TOTAL SECTION B: 80
SECTION C
5.1 Introduction
– Shares represent a portion of the company that a person/group of people own. 
– Investors have a range of investment opportunities to choose from. 
– Investment opportunities are measured against criteria for good investment. 
– Investors set financial goals and make an informed decision after considering various factors. 
– Any other relevant introduction related to the functions of the JSE/investment period/debentures and venture capital
as types of investment/shares as a form of investment.
(Any 2 × 1) (2)
5.2 Functions of Johannesburg Securities Exchange (JSE)
– Surplus funds accrued by financial institutions may be invested in shares. 
– Economic conditions in South Africa gets highlighted by activities on the JSE. 
– Shareholders/Prospective shareholders are kept informed about the prices of shares on a daily basis. 
– Bridge the gap between the public/investors and public companies that requires funding. 
BS Grade 12 TG.indb 255 2022/03/14 10:18:52

– The market price of shares on the JSE is determined by the demand for and supply of the shares after the initial
listing price. 
– Provides investors with small amounts of capital with the opportunity to invest in the economy of the country. 
– South Africa economy is given boost by new investments that the JSE promotes. 
– JSE provides investors and public companies with facilities to trade shares electronically. 
Max (12)
5.3 Investment period as a factor to consider when making an investment decision
– The Investment period refers to the duration of the investment from the initial date of investment until its
termination. 
– The duration of investment may vary from short, middle or long-term nature depending on the individual needs of
the investor. 
– The investor will be able to access his/her investment within a short period if the investment is of a short-term
nature. 
– Higher returns accrue to the investor  with long-term investments. 
– The choice of the investment period will depend on the personal circumstances of the investor. 
– Any other relevant answer related to period as a factor to consider when making an investment decision.
Max (10)
5.4 Types of investment opportunities
Debentures
– A business acquiring funds may issue debentures to raise funds from the public/investors. 
– Debentures are long-term borrowings made by companies to meet certain financial obligations. 
– The investment is made by the investor to companies for a certain period of time  linked to a certain interest rate. 
– The risk link to this type of investment is low, as the investor will be first in line should the business be declared
insolvent. 
– Interest payments are made annually to the investor, depending on the number of debentures held by the investor. 
– Any other relevant answer related to debentures.
Submax (6)
Venture capital
– Investors make funds available to prospective entrepreneur to start a business and becomes a co-owner of
the business. 
– It’s important that the investor familiarise himself with the market in which the entrepreneur will be operating
before making his/her investment. 
– Investing in an existing business may be rewarding to an investor,  provided the investor did some research on the
prevailing market conditions. 
– Any other relevant answer related to venture capital.
Submax (6)
Max (12)
5.5 Impact of shares as form of investment
Positives/ Advantages
– The shareholder will be entitled to higher dividend payments, based on a high number of shares purchased. 
– The shares may be freely sold and purchased on the JSE. 
– The investors have voting rights at the Annual General Meeting of the public company. 
– The investors return on investment is based on the financial performance of the company. 
– Investors invest in shares as hedging against increases in the general price levels of goods and services. 
– The growth in the value of shares may provide the investors with good return of investments over a longer period. 
– Any other relevant answer related to the advantages of shares as form of investment.
AND/OR
Negatives/ Disadvantages
– Dividends payable to shareholders are reliant on the company declaring a dividend based on the profit it made, if
any. 
– Investors must rely on the goodwill of the company to declare a dividend. 
– Shareholders could lose their investment, should the company be declared insolvent, making the risk high. 
BS Grade 12 TG.indb 256 2022/03/14 10:18:52

– The value of the dividends declared by the company are determined by the directors of the company. 
– Any other relevant answer related to the disadvantages of shares as form of investment.
Max (10)
5.6 Conclusion
– Shares can be sold to others for a higher price than it was purchased for. 
– A business that is managed successfully will make a number of investments over a period of time. 
– The public can buy shares of listed public companies at the JSE. 
– Any other relevant conclusion related to the functions of the JSE/investment period/debentures and venture capital
as types of investment/shares as a form of investment.
(Any 1 × 2) (2)
6.1 Introduction 2
6.2 Functions of the JSE. 12
6.3 Investment period as a factor to consider when making an
10 Max
investment decision
32
6.4 Investment opportunities 12
6.5 Impact of shares as form of investment 12
6.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40

6.1 Introduction
– Teamwork refers to several people collaborating/working together effectively to reach a common goal. 
– Each team member should contribute towards the success of the team. 
– Successful teams go through different stages of team development to become successful/effective. 
– Any other relevant introduction related to the characteristics of successful teams/importance of team dynamic
theories/stages of team development/dealing with the complainer and expert as difficult personalities.
Any (2 × 1)(2)
6.2 Characteristics of successful team performance
– Team members share a common goal, that every team member works towards achieving. 
– A group of values are shared by team members and group decisions are implemented as a collective. 
– Teams value the contributions of individual members and consensus are reached should differences exist. 
– The team environment is characterised by mutual trust/respect for each other. 
– Conflict is addressed immediately, and team members feel free to communicate with one another. 
– Meeting deadlines are important for team to achieve its goals and team members takes responsibility for such deadlines. 
– The needs of individual team members are not neglected by the team.  
– The relationships between individual team members are nurtured/encouraged. 
– Any other relevant answer related to the characteristics of successful team performance.
Max (14)
6.3 Importance of team dynamic theories in improving team performance
– Team dynamic theories are used to explain the effectiveness and importance of teamwork. 
– Tasks are allocated to team members consistent with the role the team member performs within the team. 
– The skills/experiences/talent of the team member determines the role which will be allocated to him/her. 
BS Grade 12 TG.indb 257 2022/03/14 10:18:52

– Individuals are given the chance to perform optimally within the team,  given the roles allocated to them. 
– Individuals within the team with similar skills/talents/experience  may compete for certain responsibilities/duties. 
– Team dynamic theories allows team leaders to know the personality type of individuals and enable them to
allocate tasks more effectively. 
– Disagreements amongst team members may be reduced when team members specialise in their own roles/tasks. 
– Any other relevant answer related to the importance of team dynamic theories improving team performance.
Max (12)
Forming 
– This is the first stage of team development and team members are introduced to each other . 
– Team members observe each other’s behaviour and are polite to each other. 
– In this stage team members shows mutual respect and they feel comfortable. 
– This stage is characterised by focussing on the routine and administrative details of the goals of the team.
Name 2
Explanation 2
Submax 4
Storming
– Conflict occurs amongst team members after the forming stage is concluded. 
– Team members with different ideas exchange these ideas,  which leads to conflict. 
– Team members opposes the ideas of other team members that does not correspond with their ideas. 
– Power struggles occur within the group,  and the dominant team members takes charge of the team. 
– At certain times the storming stage are often resolved quickly, and if it’s not resolved the team won’t move further
than this stage. 
Name 2
Explanation 2
Submax 4
Norming/Settling/reconciliation
– It is important that the conflict gets resolved as soon as possible,  to allow the team to move to the norming stage. 
– Team members compromise their own ideas and accept that they need to work in harmony with other team members. 
– The duties and responsibilities of all the team members are clearly set out and agreed to
– The processes involved in achieving the goals are adhered to and team members appreciate the contributions of
fellow team members. 
– Individual team members collectively work towards the goals of the team. 
– Any conflict that happens during this stage is addressed in a professional/collegial manner. 
– Any other relevant answer related to the norming stage.
Name 2
Explanation 2
Submax 4
Performing/Working as a team towards a goal
– The team is functioning optimally towards achieving the organisations goals. 
– The leader trust the team and avoids interfering in the operations of the team. 
– Processes and structures are in place to ensure the smooth execution of the job. 
– Leaders delegate and oversee the processes and procedures. 
– All team members demonstrate competence are able to work on their own and provide valuable input in decision
making. 
– Any other relevant answer related to the performing stage.
Name 2
Explanation 2
Submax 4
BS Grade 12 TG.indb 258 2022/03/14 10:18:52

– This stage of team development is characterised by the ending of the project, because the goals were achieved. 
– Some team members adjust poorly to the team breaking up,  because they’ll find it difficult to work on their own again. 
– All tasks must be completed before the team finally breaks up and individual members go their separate ways. 
– Any other relevant answer related to the adjourning/mourning stage.
Name 2
Explanation 2
Submax 4

Max (12)
6.5 Ways to deal with difficult people in the workplace
Complainer
– Listen to the complaints but don’t acknowledge them by nodding your head. 
– Interrupt the complainer after a while and proceed with strategies to deal with the issues raised. 
– Any other relevant answer related on ways how to deal with a complainer.
Submax (4)
Expert
– Listen to the employee, but let him/her know that you are in control of the situation. 
– Let him/her know that you value their inputs, but that you’ll also consider other alternatives. 
– Refrain from attacking their views, which will draw you into a confrontation with him/her. 
– Any other relevant answer related to ways how to deal with an expert.
Submax (4)
Max (8)
6.6 Conclusion
– Effective team work will contribute to achieving goals and improve productivity.
– Teams generally take longer to arrive at a decision. 
– If managers deal effective with difficult people in the workplace, productivity will increase in the business. 
– Managers must take team dynamic theories into account to improve results in the business. 
– Any other relevant conclusion related to the characteristics of successful teams/importance of team dynamic
theories/stages of team development/dealing with the complainer and expert as difficult personalities.
(Any 1 × 2) (2)
6.1 Introduction 2
6.2 Characteristics of successful team performance 14
6.3 Importance of team dynamic theories 12 Max
6.4 Stages of team development 12 32
6.5 Ways to deal with difficult people in the workplace 8
6.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
TOTAL: SECTION C 40
BS Grade 12 TG.indb 259 2022/03/14 10:18:52

Term 3
Exemplar
GRADE 12
Business Studies
AUGUST 202_
PROJECT: MARKING GUIDELINES

Marks: 50
NOTE TO TEACHERS
1. This is an individual activity and it is your responsibility to explain the task and the rubric to the learners before giving it
to them.
2. The task must be marked on the written task of the learner and marks must be indicated on the rubric.
3. Use the suggested marking guidelines, but also consider answers given to them by business owners/managers or from
their own research in books, magazines, newspapers, interviews or the internet.
4. There must be strict adherence of the dates of administering the tasks, this is non-negotiable.
QUESTION 1
1.1 Socio-economic issues and SCI projects
SOCIO-ECONOMIC ISSUES (1.1.1) CSI PROJECTS (1.1.2)
1 Poverty • Donations of resources and funds for the poor.
• Any contributions to workers like food, clothes, housing, etc.
• Helping and training of people to supply in their own needs.
• Deliver services that government is unable/slow to deliver.
2 Unemployment • Any projects to create jobs.
• New ways of thinking to keep their own workers in their jobs.
• Offer entrepreneurial skills.
• Create mechanisms that rely on Mentorship and Education.
3 Crime • Start a neighbourhood watch in their area.
• Enforce their own security precautionary measure e.g. security
guards.
BS Grade 12 TG.indb 260 2022/03/14 10:18:52

SOCIO-ECONOMIC ISSUES (1.1.1) CSI PROJECTS (1.1.2)
4 Inequality • Providing adult basic education.
• Invest in education.
• Offer employment opportunities for both women and men.
• Empower women and create opportunities for youth and
disadvantages communities.
Any other relevant socio-economic issue Any other relevant example of a CSI project used to address the
applicable to the widespread looting. socio-economic issue.
NOTE: 1. Mark the first THREE (3) reasons for looting only.
2. Award marks for reasons for looting even if CSI projects were incorrectly classified.
3. Do not award marks for the politics as a reason for looting.
Max (5)
1.2 Ways in which businesses can contribute time and effort to improve the well-being of their employees
– Pay fair wages/salaries to the workers based on the nature of their work/the prevailing economic conditions in
the market.
– Working conditions should include safety/medical/canteen facilities/benefits like housing/leave/retirement, etc.
– Pay fair bonuses, based on business earnings, as acknowledgement for hard work and commitment.
– Provide for employees’ participation in decision making that affects them.
– Provide recreational facilities for employees.
– Offer annual physical/medical assessments to workers.
– Make trauma debriefing/counselling/assistance available to any employee who requires these services.
– Offer financial assistance in the case of any hardship caused by unexpected medical costs.
– Allow flexible working hours to enhance productivity.
– Offer support programmes for employees infected and affected by HIV/Aids.
– Any other relevant answer related to the ways in which businesses can contribute time and effort to improve the
well-being of their employees.
Max (5)
QUESTION 2
2.1.1 Human rights
TYPES OF HUMAN RIGHTS MOTIVATIONS
1. Information DCL ensures that all employees received a copy of their
employment contract.
2. Privacy Personal information about their employees are kept
confidential.
3. Equity DCL always ensures that workers receive equal pay for
work of equal value.
NOTE: 1. Do not award marks for incorrect wording of human rights.
2. The motivation must link with the human right identified from the scenario.
Max (5)
2.1.2 Ways in which the business can promote the right to safety/security and protection of life in the workplace
– Employees should work in a safe working environment free from hazardous products/unsafe areas.
– Provide workers with protective clothing, e.g. gloves and footwear, etc.
– Comply with safety legislation such as OHSA/COIDA, etc.
– Take precautionary measures to ensure employees and their belongings are safe in the workplace.
– Any other relevant answer related to ways in which the business can promote the right to safety/security and
protection of life in the workplace.
Max (5)
BS Grade 12 TG.indb 261 2022/03/14 10:18:52

QUESTION 3
3.1.1 Ways in which businesses can deal with the language as a diversity issue in the workplace
– Business may specify that all communications should be in one specific language only and would expect employees
to have a certain level of fluency in that language.
– Provide training in the official language of the business.
– Employ an interpreter so that everyone can fully understand what is being said in a meeting.
– All business contracts should be in an easy-to-understand language and should be available in the language of
choice for the relevant parties signing the contract.
– No worker should feel excluded in meetings conducted in one language only.
– Any other relevant answer related to the ways in which businesses can deal with language as a diversity issue in
the workplace.
Max (5)
3.1.2 Ways in which businesses can deal with cultural differences as a diversity issue in the workplace
– The business must respect the right of workers to participate in cultural life of their choice.
– The business must provide the environment in which employees are free to use their own language when interacting
with others during their free time.
– The business can encourage employees to participate in cultural activities.
– Businesses will benefit from indigenous knowledge, that is why they can allow employees to provide solutions to
business challenges from their own cultural perspective.
– To help employees to respect each other, the business can hold regular cultural information sessions in the
workplace.
– Different cultures can be accommodated by providing different food in the canteen as well as staff functions.
– According to the EEA Act the business must employ people from various cultural backgrounds.
– The business must train employees to tolerate other cultures in the workplace.
– Any other relevant answer related to the ways in which businesses can deal with cultural differences as a diversity
issue in the workplace.
Max (5)
QUESTION 4
4.1.1 Roles of health and safety representative from the scenario
– The health and safety representatives at Hansen Steel Construction ensure that that protective clothing is provided
to all workers.
– They also identify potential dangers in the workplace.
– The health and safety representatives review measures to ensure the health and safety of workers.
NOTE: 1. Mark the first THREE (3) only.
2. Do not award marks for responses that are not quoted from the scenario.
(3 × 1) (3)
4.1.2 Other roles of health and safety representatives
– It is their duty to liaise with management to check and monitor the effectiveness of health and safety measures.
– They must ensure that the workers receive all the needed equipment to perform their work and that it is
maintained regularly.
– They must ensure that dangerous equipment is used under the supervision of trained and qualified workers.
– They must monitor production, processing, storage, transportation of material and equipment to ensure that
workers’ health and safety is not endangered by hazards resulting from it.
– Workers can lodge complaints with them and they must work together with the employer to investigate any
accidents or these complaints from the workers concerning health and safety in the workplace.
– They must ensure that employers comply with COIDA e.g. report accidents at the workplace.
NOTE: Do not award marks for the responses that were quoted in QUESTION 4.1.1.
(2)
4.2 Responsibilities of employees in promoting human health and safety in the workplace
– They have to ensure that protective clothing is provided and available to all workers and that the workers are
wearing it all the time.
– They must identify potential dangers in the workplace e.g. a loose railing at a stair case.
BS Grade 12 TG.indb 262 2022/03/14 10:18:52

– To ensure the health and safety of workers, they must initiate, promote, maintain and review safety measures in
the business.
– It is their duty to liaise with management to check and monitor the effectiveness of health and safety measures.
– They must ensure that the workers receive all the needed equipment to perform their work and that it is
maintained regularly.
– They must ensure that the business give the necessary safety training to employees to avoid potential dangers.
– They must ensure that dangerous equipment is used under the supervision of trained and qualified workers.
– They must monitor production, processing, storage, transportation of material and equipment to ensure that
workers’ health and safety is not endangered by hazards resulting from it.
– Workers can lodge complaints with them and they must work together with the employer to investigate any
accidents or these complaints from the workers concerning health and safety in the workplace.
– They must ensure that employers comply with COIDA e.g. report accidents at the workplace.
– Any other relevant answer related to the responsibilities of employees in protecting human health and safety
in the workplace.
Max (5)
QUESTION 5
5.1.1 Impact of PowerPoint slides
– The presentation may be enhanced by the use of visuals/graphics that a data projector/PowerPoint provides.
– Visuals/audio aids like sound/video clips could easily be included in the PowerPoint presentation.
– The stakeholders/audience interest in the presentation could be increased if the slides are easy to read and with
limited text.
– The interest of the stakeholders/audience may be attracted by the use of various multimedia in the slides.
– Attracting the attention/keeping the attention of the stakeholders/audience may be achieved through the use of eye-
catching backgrounds/font/colours on the slides.
– The slides used must complement the presentation/summarise the objectives of the presentation to the
stakeholders/audience.
– Any other relevant answer related to the positive impact of PowerPoint slides.
– Unprofessional handling of the data projector/PowerPoint presentation material.
– May lead to irritation/may result in the audience losing interest.
– Less effective to people with visual impairments.
– Simply reading off the slides makes a presentation boring/meaningless.
– Unable to show slides without electricity/data projector.
– Any other relevant answer related to the negative impact of PowerPoint slides.
Max (5)
5.1.2 Advise on aspects that must be included when designing a multimedia presentation.
How to design a multimedia presentation
– Start your slides with the text and heading – there are no heading.
– Avoid using text that is not legible and font that is too small – font is difficult to read.
– Choose images that will enhance the message/information that you would like to convey – image is totally
inappropriate.
– Refrain from including special effects/sounds/animation that will distract the audience from the main message/
information you would like to convey to your audience.
– Do a spell check before the presentation to eliminate any spelling/grammatical errors from your slide presentation –
spelling error “bonusses” instead of ‘’bonuses’’
– Structure the information on your slides in a logical sequence that will allow your audience/the stakeholders to
follow your presentation – no logical sequence and order with bullets.
– Limit the information on each slide to retain the attention of your audience/the stakeholders – to much information
on the slide.
– Any other relevant answer related to designing of a multimedia presentation.
Max (5)
BS Grade 12 TG.indb 263 2022/03/14 10:18:52

Term 3
Exemplar
GRADE 12
Business Studies
September 202_
PRELIMINARY EXAMINATION PAPER 1: MARKING

GUIDELINES Marks: 150 Time: 2 Hours
SECTION A
QUESTION 1
1.1 Multiple choice
1.1.1 A
1.1.2 D
1.1.3 A
1.1.4 C
1.1.5 D (5 × 2) (10)
1.2 Complete the statement

1.2.1 Compensation for Occupational injuries and Diseases
1.2.2 screening
1.2.3 fronting
1.2.4 backward
1.2.5 PESTLE (5 × 2) (10)

1.3.1 F
1.3.2 I
1.3.3 H
1.3.4 G
1.3.5 A
(5 × 2) (10)
TOTAL SECTION A: 30
Breakdown of marks
Question 1 Marks
1.1 10
1.2 10
1.3 10
TOTAL 30
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SECTION B
2.1 Factors of PESTLE factors
– Political
– Economic
– Social
– Technological
– Legal
– Environmental
NOTE: Mark the first FIVE (5) answers only.
(5 × 1) (5)
2.2 Types of Integration strategies
The business combines/merges with/takes over its distributors down the supply chain/
It involves the expansion of business activities to gain control over the distribution of
products/services. 
Forward vertical The business takes over the distribution system and sells products/services directly to
integration  consumers/customers. 
The business merges with businesses that were once their customers, while still
maintaining control of the initial/primary business activities. 
Any other relevant answer related to forward vertical integration.
Submax (3)
The business combines with/merges/takes over its suppliers up the supply chain/
This is done to decrease the business’s dependency on suppliers. 
The business expands its role to fulfil activities/tasks that were formerly/previously
Backward vertical completed by suppliers. 
integration 
It involves buying over/merging with another business that supplies products/services
to the business. 
Any other relevant answer related to backward vertical integration.
Submax (3)
The business takes control of/incorporates/merges with other businesses in the same/
related industry which produce/sell the same/similar products. 
The aim is to reduce the threat of competition/substitute products/services. 
The business is able to strengthen/expand their market share/position and enhance
Horizontal production/ distribution. 
integration 
It is the acquisition/takeover of a related business that operates at the same level of
the supply chain in the industry. 
Any other relevant answer related to horizontal integration.
Submax (3)
3. Mark the first TWO (2) answers only.
Max (6)
2.3 Leave provisions
2.3.1 Annual leave
2.3.2 Sick leave
2.3.3 Family responsibility leave
(6)
BS Grade 12 TG.indb 265 2022/03/14 10:18:52

2.4 The meaning of market penetration
– The business focus on selling existing/current products into the existing/current market to increase their market share. 
– Market research on existing/current consumers/customers is used to decide how to improve the marketing mix of
the business. 
– Aggressive marketing campaigns such as lowering/reducing prices to attract potential/existing clients are used by
the business. 
– The business does not modify existing/current products or launch new products during market penetration. 
– Any other relevant answer related to the meaning of market penetration as a type of intensive strategy.
Max (4)
2.5 Business environments and extent of control
CHALLENGES BUSINESS ENVIRONMENTS EXTENT OF CONTROL
2.5.1 2.5.2 2.5.3
The employees of Helena Bakeries Micro environment Full control
embarked on a legal strike due to
a dispute on a salary increase. 
HB buys their raw material from Market environment No control but can influence/
Abdulla’s Mills who does not Partial/Limited
deliver their products on time. 
The government has increased Macro environment.  No control
the interest rate making it difficult
for HB to borrow money from the
bank. 
NOTE: 1. Do not award marks for challenges that are not fully quoted from the scenario.
2. Do not award marks for business environments if it is not linked to the challenges.
3. Award marks for the business environments even if the quote is incomplete.
4. The extent of control must be linked to the business environment.
5. Do not award marks for the extent of control if the business environment is
not mentioned.
Max (9)
2.6 Differences between BEE and BBBEE
BEE BBBEE
A government policy that may not always be An Act that is enforced/must be complied with by
enforced businesses. 
Benefitted only a few previous disadvantaged Encouraged a wider group of previously
people in the economy disadvantaged people. 
This resulted in a few previously disadvantaged Aims to distribute the country’s wealth across a
individuals sharing in the wealth of the economy broader spectrum of society
Focused only on three pillars that did not include all Focus on five pillars which include all sectors of
previously disadvantaged people society. 
Any other relevant answer related to BEE Any other relevant answer related to BBBEE
2. The difference does not have to link but must be clear.
3. Award a maximum of TWO (2) marks if the difference is not clear/Mark either
BEE or BBBEE.
Max (4)
BS Grade 12 TG.indb 266 2022/03/14 10:18:52

2.7 Ways to comply with the COIDA
– Display a summary of COIDA in the business where it is visible to all employees. 
– Organise training on COIDA with all relevant stakeholders so that employees know their rights in the context of
COIDA, but also to protect and promote health and safety in the workplace. 
– Provide and enhance the capacity to promote health and safe working environment. 
– Register with Compensation Board and Compensation Commissioner. 
– Pay the required levies to the Compensation fund. 
– Report all accidents, injuries, illnesses and fatalities to the Compensation Commissioner as they occur. 
– Any other relevant answer related to ways in which businesses could comply with COIDA.
Max (6)
Breakdown of marks
Question 2 Marks
2.1 5
2.2 6
2.3 6
2.4 4
2.5.1 3
2.5.2 3
2.5.3 3
2.6 4
2.7 6
TOTAL 40
3.1 Aspects to be include in employment contract
– Personal details of the employee. 
– Details of the business/employer e.g. name/address, etc. 
– Job title/Position
– Job description e.g. duties/working conditions/responsibilities. 
– Job specification e.g. formal qualifications/experience/willingness to travel. 
– Date of employment/commencement of employment. 
– Place where employee will spend most of his/her working time/conduct work activities.
– Hours of work, e.g. normal time/overtime. 
– Remuneration, e.g. weekly/biweekly/fortnightly/monthly pay. 
– Benefits/Fringe benefits/Perks/Allowances. 
– Leave, e.g. sick/maternity/annual/adoption leave/family responsibility leave. 
– Employee deductions (compulsory/non-compulsory). 
– Period of contract/Details of termination. 
– Probation period. 
– Signatures of both the employer and employee. 
– List of documents that form part of the contract, e.g. appointment letter/code of conduct/ethics. 
– Disciplinary policy, e.g. rules and disciplinary procedure for unacceptable behaviour. 
– Any other relevant answer related to aspects to include in employment contract
NOTE: Mark the first SIX (6) answers only.
(6 × 1) (6)
3.2 Legislation from given statements
3.2.1 Labour Relations Act/LRA (2)
3.2.2 Employment Equity Act/EEA (2)
3.2.3 Basic Conditions of Employment Act/ BCEA (2)
BS Grade 12 TG.indb 267 2022/03/14 10:18:52

3.3 Role of the interviewer during the interview
– Allocate the same amount of time to each candidate. 
– Introduce members of the interviewing panel to each candidate/interviewee. 
– Make the interviewee feel at ease. 
– Explain the purpose of the interview to the panel and the interviewee. 
– Record responses of interviewees for future reference. 
– Do not wilfully/deliberately/intentionally misinform/mislead the interviewee. 
– Avoid discriminatory/controversial types of questions, e.g. asking a female candidate about family planning/having
children/religious questions etc. 
– Provide an opportunity for the interviewee to ask questions. 
– Close the interview by thanking the interviewee for attending the interview. 
– Any other relevant answer related to the role of the interviewer during the interview.
Max (8)
3.4 Distinction between quality control and quality assurance
QUALITY CONTROL QUALITY ASSURANCE
System that ensures the desired quality is met  by Checks carried out during  and after the production
inspecting the final product.  process.
Ensure that finished products  meets the required Ensure that finished products  meets the required
standards.  Ensure that required standards  have standards.  Ensure that required standards  have
been met at every stage of the process.  been met at every stage of the process. 
Process of ensuring that products are consistently Processes put in place to ensure that the quaity of
manufactured  to high standards.  products/services/systems adhere to pre-set standards
 with minimal defects/delays/shortcomings. 
Checking raw materials/employees/ machinery/ Ensuring that every process is aimed to get the
workmanship/products  to ensure that high product “right for the first time”  and prevent
standards are maintained.  mistakes from happening. 
Any other relevant answer to quality control. Any other relevant answer related to quality assurance.
3. Award a maximum of TWO (2) marks it the distinction is not clear/Mark either quality
control or quality assurance only.
Max (8)
3.5 TQM elements from the scenario
TQM ELEMENT MOTIVATIONS
1. Total client/customer satisfaction BCF always conducts surveys to find out about the
experience of the buyers using their products 
2. Adequate financing and capacity BFC is able to purchase quality raw materials and
equipment required for expansion. 

NOTE: 1. Correct terminology must be used to identify TQM element.
2. Do not award marks for motivation if the TQM elements were incorrectly identified.
3. Award marks for TQM elements even if the motivation was incomplete.
Max (6)
3.6 Ways in which TQM can reduce cost of quality
BS Grade 12 TG.indb 268 2022/03/14 10:18:52

– Any other relevant answer related to ways in which TQM can reduce the cost of quality.
Max (6)
Breakdown of marks
Question 3 Marks
3.1 6
3.2 6
3.3 8
3.4 8
3.5 6
3.6 6
TOTAL 40
BUSINESS ENVIRONMENTS
4.1 Pillars of BBBEE
– Management control
– Ownership
– Enterprise and Supplier Development (ESD) 
– Skills Development
– Social responsibility/Socio-economic development
(Any 4 × 1) (4)
4.2 Legislation
4.2.1 National Credit Act (2)
4.2.2 Penalties for non–compliance with NCA
– The National Credit Regulator (NCR) may impose a fine/penalty on the business for non-compliance. 
– Businesses (credit providers) may not charge any fee/interest/other charges under that specific credit
agreement. 
– The court may declare the granting of credit by the business reckless and may order consumers not to
repay the credit/or part thereof to the business. 
– Businesses may not demand payment,  sue or attach the clients/consumers salaries/assets to
repay debt. 
– The business bears all costs of removing the negative information of clients/ consumers  who were
blacklisted as a result of granting credit recklessly. 
– The business licence may be revoked for reckless granting of credit and for gross violations contravening
the NCA. 
– Any other relevant answer related to the penalties AQC/businesses may face not complying with the NCA.
Max (4)
4.3 Porters FIVE forces from given statements
4.3.1 Power of supplier/Barganing power of suppliers (2)
4.3.2 Power of competitors/Competative rivalry (2)
4.3.3 Threat of substitution/Substitutes (2)

– Sustained profitability from different product lines during times of fluctuating economic activity. 
– Increase in the number of products being sold to existing/new customers/consumers 
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– Reduce the risk of relying only on one product for sales/revenue/income. 
– Remain relevant/functional/operational in the context of ever changing business environments. 
– Any other relevant answer related to the advantages of diversification strategies.
Max (4)
BUSINESS OPERATIONS
4.5 Sources of external recruitment
– Printed media, e.g. newspapers/flyers/magazines 
– Electronic media, e.g. radio/TV 
– Social media/Social networks/Internet/Business websites 
– Recruitment agencies 
– Walk-ins
– Headhunting
– Professional associations 
– Networking 
– Educational/Training institutions 
– Posters/Bill boards just outside the business 
– Any other relevant answer related to the sources of external recruitment.
(4 × 1) (4)
4.6 Reasons for terminating an employment contract
1. Dismissal/Misconduct NE decided to terminate Jan’s employment contract due
to unsatisfactory job performance 
2. Retrenchment NE also terminated Mpho’s employment contract of due
to operational reasons. 
NOTE: 1. Mark the first TWO (2) answers only.
2. The answer does not have to be in tabular format.
3. Award marks for the reasons for the termination of an employment contract even if
the quote is incomplete.
4. Do not award marks for the motivations if the reasons for the termination of an
employment contract were incorrectly identified.
Max (6)
– Effective customer services are rendered, resulting in increased customer satisfaction. 
– Time and resources are used efficiently. 
– Productivity increases through proper time management/using high quality resources. 
– Products/Services are constantly improved resulting in increased levels of customer satisfaction. 
– Vision/Mission/Business goals may be achieved. 
– Business has a competitive advantage over its competitors. 
– Regular training will continuously improve the quality of employees’ skills/ knowledge. 
– Employers and employees will have a healthy working relationship resulting in happy/productive workers.
– Increased market share/more customers improve profitability. 
– Improves business image as there are less defects/returns. 
Max (4)
4.8 Role of quality circles as part of continuous improvement to processes and systems
– Solve problems related to quality and implement improvements. 
– Investigate/identify problems and suggest solutions to management. 
– Ensure that there is no duplication of activities/tasks in the workplace. 
– Make suggestions for improving systems and processes in the workplace. 
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– Improve the quality of products/services/productivity through regular reviews of quality processes. 
– Monitor/Reinforce strategies to improve the smooth running of business operations. 
– Reduce costs of redundancy in the long run. 
– Quality circles discuss ways of improving the quality of work/workmanship. 
– Contribute towards the improvement and development of the organisation. 
– Improve employees’ loyalty and commitment to the business and its goals. 
– Any other relevant answer related to the role of quality circle as part of continuous improvement to processes and systems.
Max (6)
Breakdown of marks
Question 4 Marks
4.1 4
4.2.1 2
4.2.2 4
4.3 6
4.4 4
4.5 4
4.6 6
4.7 4
4.8 6
TOTAL 40
SECTION C
5.1 Introduction
– The SDA enables more South Africans to gain access to skills training opportunities which have long term benefits
for the population and society. 
– SETAs are responsible for identifying skills shortages and develop strategies to overcome these challenges.
– The Skills Development Act was developed in response to the demand for redress and equity.
– The SDA aims to link learning to the demands of the labour market.
– Businesses must put measures in place to improve their compliance status.
– Any other relevant introduction related to the purpose of the SDA/ role of SETAs/impact of SDA/ways to comply with
the SDA.
(Any 2 × 1) (2)
5.2 Purpose of Skills Development Act
– Develops the skills of the South African people, with the purpose of improving productivity. 
– Encourages businesses to improve the skills of new and existing workers. 
– Invests in the education and training of the South African workforce. 
– Purposefully redresses imbalances of the past through education and training. 
– Improves the job prospects of previously disadvantaged people. 
– Provides the systematic implementation of strategies on a national, sector and workplace basis. 
– Any other relevant answer related to the purpose of Skills Development Act.
Max (12)
5.3 Role of SETA’s in supporting the SDA
– Registers various learnerships and learning programmes. 
– Promotes and establishes various learnerships. 
– Approves the workplace skills plans  and annual training reports submitted by businesses. 
– Develops skills plans that are in line with the aims of the National Skills Development Strategy (NSDS). 
– Develops/builds skills development plans for the various economic sectors. 
– Promotes learnerships and learning programmes by correctly identifying the best workplaces for practical work
experience. 
– Any other relevant answer related to the role of SETA’s in supporting the SDA.
Max (12)
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5.4 Impact of the SDA on businesses
– Increases the number of skilled employees in scarce skilled areas. 
– Improves productivity in the workplace because employees are empowered with current training demands and are
more knowledgeable. 
– Increases global competitiveness of South African businesses,  as more employees are trained with upgraded,
relevant and scarce skills. 
– Improves the return on investment (ROI)  in education and training. 
– Increases investment in education and training in the South African labour market. 
– Improves the delivery of services of businesses, as employees are working more optimally. 
– Any other relevant answer related to the advantages/postive impact of the SDA on businesses.
AND/OR
– The implementation of the SDA is time-consuming,  expensive, prescriptive and administratively burdensome. 
– Costly to implement and the Skills Development Levy (SDL)  places an additional burden on financially
struggling businesses. 
– The SDA initiative of the government may not always be supported by all businesses. 
– Businesses find it difficult to monitor/control the implementation of this Act. 
– The productivity in the workplace may decline,  as employees have to attend learnerships during work hours. 
– Only companies/businesses with a staff payroll over R500 000 per annum can claim the Skills Development
levy (SDL). 
– Any other relevant answer related to the disadvantages/negative impact of the SDA on businesses.
Max (12)
5.5 Ways in which businesses can comply with the SDA
– Display a summary of the SDA in the business where it is visible to all employees. 
– Provide opportunities to all employees to improve their skills. 
– Assess the skills of employees to determine/ascertain the areas in which skills development are needed. 
– Promote and encourage employees to improve their skills and to actively engage in learnerships. 
– Employers who collect PAYE should register with SETA. 
– Employers whose payroll exceeds R500 000 per annum should pay a 1% of it over to SETA. 
– Submit a workplace skills plan and provide evidence that it was implemented. 
– Any other relevant answer related to ways in which businesses can comply with the SDA
Max (10)
5.6 Conclusion
– Businesses comply with the Skills Development Act to gain a good image and publicity.
– SETAs were established to ensure that the workplace training and skills development are approved by the South
African Qualifications Authority (SAQA).
– The Skills Development Act plays an important role in contributing to the economic growth of the country.
– A labour inspector could order a business to stop operating should the business be found guilty of non-
compliance.
– Any other relevant conclusion related to the role of SETAs/purpose of the National Skills
– Any other relevant conclusion related to the purpose of the SDA/role of SETAs/impact of SDA/ways to comply with
the SDA.
Any (1 × 2) (2)
BS Grade 12 TG.indb 272 2022/03/14 10:18:52

5.1 Introduction 2
5.2 Purpose of SDA 12
5.3 Role of SETAs 12 Max
5.4 Impact of SDA on businesses 12 32
5.5 Ways in which businesses can comply with SDA 10
5.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40

6.1 Introduction
qualifications/ competencies/experience to fill vacancies/available posts
– The employer must be clear about the nature/type of work to be performed so that an appropriate job description
and job specification can be prepared. 
– Selection involves purposefully choosing the best candidate/applicant for an available post based on the
requirements of the job analysis. 
– Fringe benefits are offered to employees regardless of regular wages/salaries. 
– Any other relevant introduction related to job description/job specification/selection procedure/purpose of the
interview/impact of fringe benefits on businesses.
(Any 2 × 1) (2)
6.2 Differences between job description and job specification
JOB DESCRIPTION JOB SPECIFICATION
Describes duties/responsibilities of a specific job.  Describes the minimum acceptable personal qualities/
skills/ qualifications needed for the job. 
Written description of the job and its requirements. Written description of specific qualifications/skills/
 experience needed for the job. 
job e.g. job title/duties/working conditions/locations fill the position, e.g. formal qualifications/willingness
of the place of work/relationship of the job with to travel/work unusual hours
other jobs in the business 
Any other relevant answer related to job description Any other relevant answer related to job
specification.

2. The differences do not have to link but must be clear.
3. Award a maximum of FOUR (4) marks it the distinction is not clear/Mark either job
description or job specification.
Max (8)
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Option 1
– Determine fair assessment criteria on which selection will be based. 
– Conduct preliminary screening which is sorting the applications received according to the criteria for the job. 
– Check that applicants are not submitting false documents such as forged certificates/degrees/achievements. 
– Make a preliminary list of all applicants who qualify for the post. 
– Screen and check references,  e.g. check applicants’ criminal records/credit history/social media. etc. 
– Conduct preliminary interviews to identify suitable applicants. 
– Inform all applicants about the outcome of the application. 
– Compile a shortlist of approximately five people. 
– Invite the shortlisted applicants/candidates for an interview. 
– Shortlisted candidates may be subjected to various types of selection tests, e.g. skills test. 
– A written offer is made to the chosen candidates. 
OR
Option 2
– Receive documentation,  e.g. application forms and sort it according to the criteria of the job. 
– Evaluate CVs and create a shortlist/screen the applicant. 
– Check information in the CVs and contact references. 
– Conduct preliminary sifting interviews to identify applicants who are not suitable for the job, although they meet
the requirements. 
– Assess/Test candidates who have applied for senior positions to ensure the best candidate is chosen. 
– Conduct interviews with shortlisted candidates. 
– Offer employment in writing to the selected candidate(s). 
NOTE: The procedure may be in any order.
Max (12)
6.4 Purpose of an interview
– Creates an opportunity where information about the business and applicant can be exchanged.
– Obtains information about the strengths and weaknesses of each candidate. 
– Determines a candidate’s suitability for the job/Determines whether the candidate would add value to the
business. 
– Helps the employer in choosing/making an informed decision about the most suitable candidate for the job. 
– Matches information provided by the applicant to the job requirements. 
– Evaluates the skills/personal characteristics/qualities of the applicant. 
– Verifies to a certain degree the accuracy regarding information presented on the CV. 
– Any other relevant answer related to the purpose of an interview.
Max (12)
6.5 Impact of fringe benefits for businesses
– Attractive fringe benefit packages may result in higher employee retention reduces employee turnover/low
attrition rates. 
– Attracts/Retains qualified/skilled/experienced employees who may positively contribute towards the business
goals/objectives. 
– Increases employee job satisfaction/loyalty/morale as they may be willing to go the extra mile. 
– Improves productivity resulting in higher profitability. 
– Businesses save money as benefits are tax deductible. 
– Fringe benefits can be used as leverage for salary negotiations. 
– Any other relevant answer related to the positive impact/advantages of fringe benefits for businesses.
BS Grade 12 TG.indb 274 2022/03/14 10:18:52

AND/OR
– Fringe benefits are additional costs that may result in cash flow problems for the business. 
– Administrative costs increase as benefits need to be correctly recorded for tax purposes. 
– Decreases business profits, as incentive/package/remuneration costs are higher. 
– Creates conflict/leads to corruption if fringe benefits are allocated unfairly. 
– Workers only stay with the business for fringe benefits and may not be committed/loyal to the tasks/business. 
– Businesses who offer employees different benefit plans may create resentment to those who receive less benefits
resulting in lower productivity. 
– Businesses who cannot offer fringe benefits fail to attract skilled workers. 
– Businesses have to pay advisors/attorneys to help them create benefit plans that comply with the law. 
– Any other relevant answer related to the negative impact/disadvantages of fringe benefits on businesses.
Max (14)
6.6 Conclusion
– Employees are the most important resource in any business and is strongly influenced by a good recruitment process
and interview
– The goal and objectives of businesses cannot be achieved without qualified and skilled employees.
– A well-organised interview process will result in identifying and appointing the most suitable and deserving
candidate. .
– Fringe benefits will help the business to convince good candidates to accept the job offer of the business. 
– Any other relevant conclusion related to job description/job specification/selection procedure/purpose of the
interview/impact of fringe benefits for businesses.
(1 × 2) (2)
[40]
6.1 Introduction 2
6.2 Difference between job description and job specification 8
6.3 Selection procedure 12 Max
6.4 Purpose of an interview 12 32
6.5 Impact of fringe benefits for businesses 14
6.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
TOTAL SECTION C: 40
GRAND TOTAL: 150
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Term 3
Exemplar
GRADE 12
Business Studies
September 202_
PRELIMINARY EXAMINATION PAPER 1: MARKING

GUIDELINES Marks: 150 Time: 2 Hours
SECTION A
QUESTION 1
1.1 Multiple choice
1.1.1 B
1.1.2 C
1.1.3 A
1.1.4 B
1.1.5 A
(5 × 2) (10)

1.2.1 Unemployment Insurance
1.2.2 compound interest
1.2.3 language
1.2.4 RSA Retail Saving Bond
1.2.5 personal liability
(5 × 2) (10)
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1.3.1 F
1.3.2 G
1.3.3 H
1.3.4 I
1.3.5 J (5 × 2) (10)
TOTAL SECTION A: 30
Breakdown of marks
Question 1 Marks
1.1 10
1.2 10
1.3 10
TOTAL 30
SECTION B
– Indemnification/Indemnity
– Security/Certainty
– Utmost good faith
– Insurable interest
NOTE: Mark the first FOUR (4) responses only.
Any (4 × 1) (4)
2.2 Types of investments from statements
2.2.1 Fixed deposit (2)
2.2.2 Unit trusts (2)
2.3 Functions of the Johannesburg Securities Exchange

– Surplus funds accrued by financial institutions may be invested in share participation. 
– Economic conditions in South Africa gets highlighted by activities on the JSE. 
– Shareholders/Prospective shareholders are kept informed about the prices of shares daily. 
– Bridge the gap between the public/investors and public companies that requires funding. 
– The market price of shares on the JSE is determined by the demand for and supply of the shares after the initial
listing price. 
– Provides investors with small amounts of capital with the opportunities to invest in the economy of the country. 
– South Africa economy is given boost by new investments that the JSE promotes. 
– JSE provides investors and public companies with facilities to trade shares electronically. 
Max (6)
2.4 Advantages of insurance for businesses
– The insured do not have to bear the risk of losses/damages to assets/possessions 
– Taking over the risk by the insurer from the insured is linked to certain terms and conditions stipulated in the
insurance contract. 
– The businesses are protected from damages/losses incurred due to natural disasters. 
– The businesses are protected from damages/losses incurred due to theft/burglary of assets/possessions. 
– The businesses will be compensated for insurable losses of assets/possessions caused by fire.
– Businesses are protected against the loss of earnings,  due to strikes by employees
– Businesses are protected against deceitful/dishonest employees. 
– A businessman may insure the life of a business partner and receive compensation on his/her death to prevent the
loss of capital. 
– Businesses may insure the lives of debtors to protect the businesses against losses due to death of a debtor. 
– Any other relevant answer related to the advantages of insurance.
Max (6)
BS Grade 12 TG.indb 277 2022/03/14 10:18:53

2.5 Visual aids
2.5.1 Visual aids from the scenario
VISUAL AIDS MOTIVATIONS
Hand outs He will give his audience copies of his presentation at
the end of the presentation. 
Interactive whiteboard/Smart board He also decided to use visual aids that can easily be
controlled by the touch of a finger. 
NOTE: 1. Mark the first TWO (2) answers only.
3. Award marks for visual aids even if the quote is incomplete.
4. Do not award marks for the motivations if the visual aids were incorrectly
identified.
Max (6)
2.5.2 Responding to questions in a non-aggressive and professional manner
– Listen to each question carefully and ensure that you interpret the question correctly
– Restate the question for your own understanding if you are uncertain about the question. 
– Respond only to a question when you are certain about the question be asked. 
– When answering a question, it’s important that you address the question and not the person asking the
question. 
– Be prepared to acknowledge good questions by emphasising the value of question to the presentation
– Don’t attempt to answer questions that you do not know the answer to, acknowledge this to your
audience. 
– Don’t be afraid to admit mistakes made during the presentation if such mistakes are mentioned by your
audience
– It is important that you remain polite/courteous/professional when responding to questions
– Refrain from becoming involved in a debate/argument with the person/s posing the questions. 
– Any other relevant answer related to ways in which a presenter can respond to questions after the
presentation in a non-aggressive manner and professional manner.
Max (6)
2.6 Factors that contribute to success and/or failure of a partnership
2.6.1 Management Partners are actively involved in Decision making can be time-
management and may use the ideas of consuming as all partners have to be in
other partners.  agreement
Not all partners need to be actively Partners have to do all of the
involved in management and would administration,  management and
rather appoint competent managers.  decision-making in the business. 
Partners can be creative and have access Partners may disagree on how to run the
to expertise of other partners when business,  which may lead to tension
difficult decisions have to be made.  between them. 
Any other relevant answer related to Partners are agents of the partnership
how management can contribute to the and bad management decisions may be
success of a partnership forced onto other partners.
Different personalities and opinions
could lead to conflict or disagreements. 
Any other relevant answer how
management can contribute to the failure
of a partnership
Submax (4)
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2.6.2 Capital More capital can be obtained because Partners may not all have capital to put
more than one partner contributes to into business when needed. 
capital.  Unequal inputs as some partners put in
Partners are responsible for success and expertise instead of cash. 
they will be carefully with spending and Any other relevant answer how capital can
management of capital.  contibute to the failure of a partnership
Any other relevant answer how capital can
contribute to the success of a partnership.
Submax (4)
2. Mark either success and/or failure of EACH factor.
Breakdown of marks
Question 2 Marks
2.1 4
2.2 4
2.3 6
2.4 6
2.5.1 6
2.5.2 6
2.6.1 4
2.6.2 4
TOTAL 40
3.1 Economic rights of employees
– Freedom from forced labour. 
– The right to accept or choose work. 
– Fair wages and equal pay for equal work. 
– The right to leisure and reasonable limitation of working hours. 
– Safe and healthy working conditions. 
– Everyone has the right to form trade or join unions, and to strike
– Any other relevant answer related to economic rights of employees.
NOTE: 1. Mark the first TWO (2) responses only.
Any (2 × 2) (4)
3.2 Human rights from statements
3.2.1 Equity (2)
3.2.2 Freedom of speech and expression (2)
3.2.3 Safety/security and protection of life (2)
3.3 Differences between ethical and professional behaviour

Refers to the principles of right and Refers to what is right/wrong/acceptable in a
wrong/acceptable in society business
Conforms to a set of values that are morally Set of standards of expected behaviour
acceptable
Forms part of a code of conduct to guide Applying a code of conduct of a profession or
employees to act ethically business
Focuses on developing a moral compass for decision Focuses on upholding the reputation of a business/
making profession
BS Grade 12 TG.indb 279 2022/03/14 10:18:53

Involves following the principles of right and wrong Includes guidelines on employees’ appearance/
in business activities/practices/dealings communication/attitude/responsibility, etc.
Any other relevant answer related to ethical Any other relevant answer related to professional
behaviour behaviour.
2. The difference does not have to link but must be clear.
3. Award a maximum of TWO (2) marks if the difference is not clear/Mark either ethical
behaviour or professional behaviour.
Max (4)
3.4 Ways in which businesses can deal with difficult employees in the workplace
– Determine a deadline by which the behaviour of the difficult employee must improve.
the behaviour prior to the deadline
– Provide the difficult employee with guidelines for improvement of his/her behaviour
– Assist the difficult employee about being realistic about changes in his behaviour
– Any other relevant answer related to the ways in which businesses can deal with difficult employees in the
workplace.
Max (8)
3.5 Criteria for successful team performance
Criteria for successful team performance from the scenario
CRITERIA MOTIVATIONS
Interpersonal attitudes and behaviour Thandi gives credit to members for their positive
contributions. 
Co-operation/ Collaboration She also ensures that all team members take part in
decision making.
3. Award marks for the criteria even if the quote was incomplete.
4. Do not award marks for the motivations if the criteria were incorrectly
identified.
Max (6)
3.6 Dealing with gender as a diversity issue
– The business should offer equal employment opportunities to males and females. 
– Both men and women should have the opportunity to be promoted to managerial positions. 
– According to the EEA Act, women should have equal opportunities to apply for jobs. 
– The business must set targets for gender equity in the business as well as the implementation there of. 
– New appointments should be based on skills and ability  despite of the gender of the person. 
– The business should introduce affirmative action by ensuring that male and female employees are remunerated
fairly and equally
– Any other relevant answer related to ways in which businesses can to deal with gender as a diversity issue in the
workplace.
Max (6)
BS Grade 12 TG.indb 280 2022/03/14 10:18:53

3.7 Impact of force field analysis
– It provides a visual summary of all the various factors supporting and opposing a particular idea
– Employees feel included and understood the way the business is going. 
– Employees develop and grow with the business because they are included in the process. 
– Informed decisions can be made as forces for  and against are critically evaluated. 
– Enables businesses to strengthen the driving forces  and weaken the restraining forces. 
– Businesses are able to have an idea of the timeline required and the requirements of additional resources. 
– Any other relevant answer related to the positive impact/advantages of force field analysis
AND /OR
Disadvantages/Negatives
– It is time consuming since the business must stabilise before more changes can be made. 
– Requires the participation of all business units
– The analysis developed is entirely dependent upon the skill level  and knowledge of the group working on the
analysis. 
– Any other relevant answer related to the negative impact/disadvantages of force field analysis as a problem solving
technique.
Max (6)
Breakdown of marks
Question 3 Marks
3.1 4
3.2 6
3.3 4
3.4 8
3.5 6
3.6 6
3.7 6
TOTAL 40
BUSINESS VENTURES
4.1 Types of preference shares
– Participating 
– Non-participating 
– Cumulative 
– Non-cumulative 
– Redeemable 
– Non-redeemable 
– Convertible 
– Non-convertible 
– Any other relevant answer related to types of preference shares.
Any (4 × 1) (4)
BS Grade 12 TG.indb 281 2022/03/14 10:18:53

4.2
Insurance questions from the scenario (2)
4.2.1 Average clause
4.2.2 Calculation of average clause
Amount insured  × Amount of damages/loss
Value of insured item
R 5000 × R 4 000
R 8000
= R 2 500
NOTE: 1. Award full marks (4) if the answer is correct and no workings are shown.
2. If the formula and workings were shown correctly but the final answer is wrong,
award a maximum of THREE (3) marks.
3. If the workings and the answer are incorrect, award a maximum of ONE mark for
the formula.
Max (4)
4.3 Differences between limited and unlimited liability
Losses are limited to the amount that the owner The liability of the owners to pay debts/claims is not
invested in the business.  limited to the business only. 
Applicable to forms of ownership/companies that Applicable to a sole proprietorship and partnership as
have a separate legal entity/personality. they do not have a separate legal entity/personality.
Any other relevant answer related to limited liability Any other relevant answer related to unlimited
liability
NOTE: 1. The difference does not have to be in tabular form.
2. The difference does not have to link but it must be clear.
3. Award a maximum of TWO (2) marks if differences are not clear. Mark either limited or
unlimited liability.
Max (4)
4.4 Aspects that must be considered when designing a multimedia presentation
– Start your slides with the text and heading 
– Contrast the colour of your text with the colour of the background 
– Avoid using text that are not legible and font that is too small
– Choose images that will enhance the message/information that you would like to convey
– Include appropriate graphics to complement text on the slides
– To captivate your audience, include special effects/sounds/animation in your presentation
– Quick access to other documents/videos/ pictures/ graphs must be enabled by means of hyperlinks.
– Refrain from including special effects/sounds/animation that will distract from the main message/information that
you would like to convey to your audience. 
– Do a spell check before the presentation to eliminate any spelling/grammatical errors from your slide
presentation 
– Structure the information on your slides in a logical sequence, that will allow your audience/the stakeholders to
follow your presentation
– Limit the information on each slide to retain the attention of your audience/the stakeholders
– Any other relevant answer related on how to design a multimedia presentation.
Max (6)
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BUSINESS ROLES
– Forming
– Storming
– Norming/Settling/Reconciliation
– Performing/Working as a team towards a goal
– Adjourning/Mourning
Any (4 × 1) (4)
4.6 King Code principles
4.6.1 King Code principles from the scenario
King Code principles Motivations
1. Transparency The management of FCL ensures that their employees
and shareholders are aware of the company’s
employment policies. 
2. Accountability They also ensure that regular communication between
management and stakeholders takes place. 
3. Award marks for the King Code principles even if the quote is incomplete.
4. Do not award marks for the motivations if the King Code principles were
Max (6)
4.6.2 Ways in in which professional, responsible, ethical and effective business practice should
be conducted
– Business decisions and actions must be clear/transparent to all stakeholders. 
– Businesses should be accountable /responsible for their decisions and actions/ patent rights. 
– The business should hire honest/trustworthy accountants/financial officers with good credentials to
ensure transparent recording and financial statements. 
– The payment of taxes must be regular/timeous and the business must disclose all needed information to
SARS and not finding loopholes to avoid paying taxes. 
– The business should draw up a code of ethics/conduct.  This document must states acceptable behaviour
in the business. 
– There must be on-going development and training for all employees of the business. 
– Performance management systems/Appraisals should be in place to motivate employees of the business. 
– There must be adequate internal controls/monitoring/evaluation to ensure accountability of the business. 
– The business’s salaries and wages must be fair and in line with the requirements of the BCEA. 
– Businesses must take care of the environment and use green policies in the workplace such as recycling
paper, responsible disposal of waste material and safe energy. 
– The business must not start a business venture at someone else’s expense with the ideas of other
businesses/individuals and respect intellectual property of other businesses. 
– Businesses should treat all their employees equally,  regardless of their race/colour/age/gender/disability
etc. They must also adhere to the requirement of EEA act. 
– Provide good quality goods and services to customers and pay attention to the safety of customers as
well as give clear information to the customers to make informed decisions.
– Any other relevant answer related to the application of professional, responsible, ethical and effective
business practices in the workplace.
Max (4)
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4.7 Strategies businesses can use to protect the environment and human health
– Businesses must not generated profit at the expense of the environment, but they must adhere to the relevant laws
and regulations. 
– The business should be aware of their impact on pollution and other environmental issues to minimise its impact
e.g. safe disposal of waste and dumping of toxic waste, etc. 
– The business must also take steps to become involved in environmental awareness programmes. 
– The business must alter its production techniques in favour of cleaner and greener technologies to protect the
environment. 
– According to the social rights of workers the business must test water in the workplace to ensure that it is safe for
human consumption. 
– The business must look after natural resources and promote nature conservation. 
– The business must have a policy to minimise pollution and actively re-use, recycling and reduce waste. 
– The business can reduce consumption of goods and services which are environmentally unfriendly e.g. invest in
appropriate technology like clean solar or wind power.
– They must register or engage with recognised institutions or bodies that promote green peace and green energy.
– The physical working conditions in the workplace should always be worker friendly, safe and promote occupational
health. 
– The business must evaluate the physical working conditions, to improve human health e.g. adequate lighting and
ventilation should be available and functional. 
– To reduce accidents the machines must be serviced and well maintained regularly. 
– The business must educate people about hygiene issues e.g. washing of hands. 
– To improve the health of their workers, the business must encourage employees to do regular health checks e.g.
blood pressure and temperature checks. 
– Any other relevant answer related to strategies on how businesses can protect the environment and human health.
Max (6)
Breakdown of marks
Question 4 Marks
4.1 4
4.2.1 2
4.2.2 4
4.3 4
4.4 6
4.5 4
4.6.1 6
4.6.2 4
4.7 6
TOTAL 40
SECTION C
5.1 Introduction
– Good leaders can also be good managers as both can inspire people and bring about change. 
– Leaders with a positive attitude can create opportunities and motivate people to be productive.
– Many managers are also good leaders with excellent management skills.
– Some managers are task driven which may result in conflict if employees’ interests are neglected.
– Managers who ignore their leadership role will not be able to motivate people to get the job done successfully.
– Theories of leadership and management guide leaders/managers on how to address/manage certain situations.
– The laissez-fair leadership style can be used when employees have expertise and skills to perform a particular task. 
– Any other relevant introduction related to management/leadership/ role of personal attitude in successful leadership/
situational theory/ Laissez-Faire leadership style.
Any ( 2 × 1) (2)
BS Grade 12 TG.indb 284 2022/03/14 10:18:53

5.2 Difference between management and leadership
Leadership Management
Lead by inspiring and motivating employees.  Manage processes by using his/her authority. 
Provide guidance and direction to employees.  Instructional in his approach when dealing with
employees. 
Promotes creativity to improve productivity levels.  Task orientated, ensuring the job gets done. 
Focus on vision and mission of the organisation.  Follow the plans to reach targets. 
Focus on potential of employees.  Focus on organisation targets. 
Influence the actions of employees.  Focus on the processes involved in the production
process. 
Creative/Innovative when dealing with challenges. Control the actions of employees. 
People Orientated, thus putting employees first.  Administer plans as set out by top-management. 
Any other relevant answer related to the meaning Any other relevant answer related to the meaning
of leadership. of management.

2. The differences do not have to link but must be clear.
3. Award a maximum of SIX (6) marks if the differences are not clear. Mark either
leadership or management.
Max (12)
5.3 Role of personal attitude in successful leadership
– Exceptional leaders will ensure that the environment at work is filled with a positive attitude coming from
him/her. 
– A positive attitude from the leader may have a positive effect on the employees, resulting in increased
motivation levels
– A negative attitude from the leader may have the converse effect on employees.
– It is important that employees see within the leader, the type of behaviour they’re required to adopt and display at
the work place. 
– Successful leaders allocate task/responsibilities to employees based on their knowledge of the employees’
skills/abilities. 
– Leader should be enthusiastic in his engagement with employees because it develops confidence within the leader
– Successful leaders have a continuing desire to work towards and achieve more professional success
– Leaders with a positive attitude constantly seek better/improved techniques to enhance performances. 
Max (12)
5.4 Situational leadership theory
– Leaders are required to manage employees under a different conditions and different character traits are required
to deal with each situation within the workplace. 
– A different leadership style would be adopted by the leader,  based on the prevailing circumstances on a
particular time. 
– Effective leaders may adopt the leadership style that will ensure that the goals of the organisation are
achieved. 
– The relationship between the leader and the employees are based on values of trust/ integrity/ respect 
– Leaders possesses the skills/knowledge to analyse situation and allocate tasks/ responsibilities to the most
suitable employees. 
– Conflict could arise if the leadership style is deemed inconsistent when dealing with employees in
different situations. 
– The effectiveness of this leadership theory is dependent on the relationship that exist between the leader
and employees 
– Any other relevant answer related to the situational leadership theory.
Max (10)
BS Grade 12 TG.indb 285 2022/03/14 10:18:53

5.5 Impact of Laissez-Faire leadership style on businesses
Advantages/Positive
– Employees are trusted and given the responsibility of making decisions in areas of their own expertise 
– Employees don’t need to consult the leader, when making decisions which may benefit the organisation. 
– Motivation levels of employees increases, because the leader recognises their abilities/ skills to make decisions. 
– Productivity levels of the organisation could increase significantly because employees feel valued/appreciated. 
– Employees experience personal growth/development as they are allowed to make decisions on their own. 
– The leadership skills of individual employees may develop as they interact with other employees in decision
making 
– Any other relevant answer related to the positive impact/advantages of Laissez-Faire leadership style
AND / OR
Disadvantages
– The uncertainty regarding clear decision making could be influence the morale of employees negatively. 
– Employees could be hesitant to take decisive actions, which could affect their work performance. 
– Conflict could arise between employees and fellow team members, if the actions of employees with strong
personalities are questioned. 
– The leader does not become involved in disagreements amongst employees. 
– Employees may find it difficult to get fellow members to meet deadlines, which may impact negatively on deadlines
being met. 
– Productivity levels may decrease if the employees lack the skills/knowledge necessary to make the right
decisions
– Any other relevant answer related to the negative impact/disadvantages of Laissez-Faire leadership style.
Max (12)
5.6 Conclusion
– Managers can also be good leaders if they do not only focus on the task only but also on the people who must
execute the task. 
– Leaders who understand various leadership styles may be able to lead effectively and apply the correct
leadership style. 
– A leader who is positive and enthusiastic will inspire his followers to improve themselves and achieve their
own goals. 
– Managers can also be successful leaders if they not only focus on the task at hand, but also the people/workers who
will execute the task..
– Any other relevant conclusion related to management/leadership/ role of personal attitude in successful leadership/
situational theory/ Laissez-Faire leadership style.
(Any 1 × 2) (2)
5.1 Introduction 2
5.2 Difference between management and leadership 12
5.3 Role of personal attitude in successful leadership 12 Max
5.4 Situational leadership theory 10 32
5.5 Impact of Laissez-Fair leadership style 12
5.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 286 2022/03/14 10:18:53

6.1 Introduction
– Corporate Social Responsibility is the way a business conducts its operations ethically and morally, regarding the use
of human, physical and financial resources. 
– Businesses should consider the impact of business operations on the environment in their decisions. 
– Businesses are corporate citizens and therefore have a responsibility towards society as well as their employees. 
– Businesses should take care of the wellbeing of their employees to increase productivity and profitability. 
– Any other relevant introduction related to the purpose of corporate social responsibility/ relationship between social
responsibility and triple bottom line/ impact of CSR on businesses/employee wellbeing.
Any (2 × 1) (2)
6.2 Purpose of corporate social responsibility/CSR
– Society expect of them contributions and they want to live up to society’s expectations e.g. they look after the
wellbeing of the community. 
– They want to comply with the expectations of government and the law e.g. not exploiting natural resources. 
– The business can gain economic advantages e.g. gaining credits for controlling carbon emissions. 
– The business’s policies take ethical considerations into account e.g. they decide to cut on their emissions in the
production process. 
– Business operations address triple bottom line through CSR programs to be listed on the JSE SRI. .
– Any other relevant answer related to the purpose of CSR.
Max (10)
6.3 Relationship between social responsibility and triple bottom line
6.3.1 Social/People
– Businesses/organisations should not have a negative impact on or exploit people, their employees,
customers or the community. 
– Businesses should engage and invest in sustainable community programmes/projects that will benefit
and/or uplift communities. 
– Businesses should contribute to the well-being of all their stakeholders. 
– Any other relevant answer related to the relationship between social responsibility and people as a triple
bottom line element.
Submax (4)
6.3.2 Environment/Planet
– Businesses should not exhaust resources/harm the environment for production or to gain profit for itself. 
– Positively, they may support energy-efficient or eco-friendly products and production methods. 
– They must take part in recycling or re-use of waste, e.g. make use of recycled material for packaging or
in products. 
– Any other relevant answer related the relationship between to social responsibility and planet as a triple
Submax (4)
6.3.3 Economic/Profit
– Triple Bottom line means that businesses should not only focus on its own profit and charge high prices
but should also invest in CSI projects. 
– Businesses should not make a profit  at the expense of its community. 
– Any other relevant answer related to the relationship between social responsibility and profit as a triple
Submax (4)
Max (12)
6.4 Impact of CSR on businesses
Positive/Advantages
– It may attract experienced employees and increase the productivity of the business. 
– The business may have a competitive advantage,  resulting in good publicity in the media.
– It promotes customer loyalty resulting in more sales. 
– They can use CSI as a marketing strategy to promote their products. 
– CSI helps to attract investors when the business are included in the JSE SRI
– The businesses gain tax advantages such as tax reduction or tax rebates. 
BS Grade 12 TG.indb 287 2022/03/14 10:18:53

– Any other relevant answer related to the positive impact/advantages of CSR on businesses.
AND/OR
– CSR programmes could be taken for granted by the community and customers may not buy the business’s
products. 
– It is difficult for small and medium enterprises to implement CSR programmes. 
– It is expected from businesses to draw up detailed reports which can be time consuming. 
– Social involvement is funded from business profits which could have been used to the benefit of customers and
reduce prices. 
– CSR activities distract business focus from its core business functions. 
– Businesses find it difficult to adhere to legislation governing CSR. 
– Any other relevant answer related to the negative impact/disadvantages of CSR on businesses.
Max (12)
6.5 Ways in which businesses can contribute time and effort in improving the well-being of their employees
– Pay fair wages/salaries to the workers based on the nature of their work and the prevailing economic conditions in
the market. 
– Pay fair bonuses, based on business earnings, as acknowledgement for hard work and commitment. 
– Provide recreational facilities for employees and encourage them to stay fit and healthy. 
– Working conditions should include safety, medical, canteen facilities. Also include benefits like housing, leave and
retirement packages, etc. 
– Start a nutritional programme so that employees can enjoy one meal per day to keep them in a healthy condition. 
– Provide transport for employees who work unusually long hours. 
– Conduct team-building sessions to improve employees’ morale. 
– Any other relevant answer related to ways in which businesses can contribute time and effort in improving the well-
being of their employees.
Max (12)
6.6 Conclusion
– Corporate social responsibility is an obligation required by law and benefits both businesses and society. 
– CSR programmes have a lot of benefits for businesses and the community. 
– Businesses will benefit a lot from investing time and effort in to improve the well-being of their employees. 
– Any other relevant conclusion related to the purpose of corporate social responsibility/ relationship between social
responsibility and triple bottom line/ impact of CSR on businesses/employee wellbeing.
(Any 1 × 2) (2)
[40]

6.1 Introduction 2
6.2 Purpose of CSR 10
6.3 Relationship between social responsibility and triple bottom line 12
Max
6.4 Impact of CSR on businesses 12 32
6.5 Ways in which businesses can contribute time and effort in 12
improving the well-being of their employees
6.6 Conclusion 2
INSIGHT
Layout 2
8
Synthesis 2
TOTAL MARKS 40
BS Grade 12 TG.indb 288 2022/03/14 10:18:53

DBE Business Studies Grade 12 Teachers Guide 2022

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indb 1 2022/03/14 10:18:36

Grade 12 Teachers Guide

Book ISBN: 978-1-77633-231-1

First published in 2022

Published by: The Training Room Online and Imprint Publishing

Copyright in the text remains with the contributors.

Rights of other copyright holders

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BS Grade 12 TG.indb 3 2022/03/14 10:18:36

What is Business Studies?

Weighting of Curriculum Topic

The purpose of Business Studies

4 Business Studies | Grade 12 | Teachers Guide

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Subject Time allocation per week (hours)

• Tips or advice on approaches to teaching different topics

Requirements to offer Business Studies as a subject

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6 Business Studies | Grade 12 | Teachers Guide

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Annual Teaching Plan 7

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8 Business Studies | Grade 12 | Teachers Guide

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Introduction to the Textbooks

How the Learner’s Book works

How to use this Teacher’s Guide 9

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Before the class During the class After the class

10 Business Studies | Grade 12 | Teachers Guide

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Action verb What you need to do Example

Best practices – lessons for the classroom 11

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12 Business Studies | Grade 12 | Teachers Guide

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Exam preparation – General tips for the learners

Best practices – lessons for the classroom 13

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14 Business Studies | Grade 12 | Teachers Guide

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How to make your own mind maps:

On the day of the exam

Best practices – lessons for the classroom 15

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Scaffold learning tasks or activities

Build in autonomy (choice)

16 Business Studies | Grade 12 | Teachers Guide

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Best practices – lessons for the classroom 17

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18 Business Studies | Grade 12 | Teachers Guide

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General tips, links and ideas 19

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• Use a public kahoots or create your own.

• To create a new quiz from Google Drive:

20 Business Studies | Grade 12 | Teachers Guide

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NOTE: 1 Do not award marks for the right to fair/responsible marketing/promotion.