Business Studies GR 11 MEMO Paper2
Business Studies GR 11 MEMO Paper2
BUSINESS STUDIES
PAPER 2
MEMORANDUM
JUNE 2019
MARKS: 150
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NOTES TO MARKERS
PREAMBLE
The notes to markers are provided for quality assurance purposes to ensure the following:
(a) Fairness, consistency and reliability in the standard of marking
(b) Facilitate the moderation of candidates' scripts at the different levels
(c) Streamline the marking process considering the broad spectrum of markers across the
country
(d) Implement appropriate measures in the teaching, learning and assessment of the subject
at schools/institutions of learning
4. 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.)
8. In an indirect question, the theory as well as the response must be relevant and
related to the question.
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11. Note that no marks will be awarded for indicating Yes/No in evaluation type
questions requiring substantiation or motivation. (Applicable to SECTIONS B
and C)
12. The differentiation between 'evaluate' and 'critically evaluate' can be explained
as follows:
NOTE
13. The allocation of marks must be informed by the nature of the question,
cognitive verb used, mark allocation in the marking guidelines and the context
of each question.
14. Mark only the FIRST answer where candidates offer more than one answer for
SECTION B and C questions that require one answer.
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15. SECTION B
15.1 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.
15.2 If two facts are written in one sentence, award the candidate FULL credit. Point
14.1 above still applies.
15.3 If candidates are required to provide their own examples/views, brainstorm this
at the marking centre to finalise alternative answers.
15.4.1 If the number of facts are specified, questions that require candidates
to 'describe/discuss/explain' may be marked as follows:
● Fact::2marks (or as indicated in the marking guidelines)
● Explanation:1 mark
The 'fact' and 'explanation' are given separately in the marking
guidelines to facilitate mark allocation.
15.4.2 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 guidelines.
15.5 ONE mark may be awarded for answers that are easy to recall, requires one
word answers or is quoted directly from a scenario/case study. This applies to
SECTIONS B and C in particular (where applicable).
16. SECTION C
16.1 The breakdown of the mark allocation for the essays is as follows:
Introduction
Content Maximum:
Conclusion 32
Insight 8
TOTAL 40
16.2
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16.3 Indicate insight in the left-hand margin with a symbol e.g. (‘L, A, S, and/or
O’)
16.5 Mark all relevant facts until the SUB MAX/MAX mark in a subsection has
been attained. Write SUB MAX/MAX after maximum marks have been
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16.6 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
16.7 When awarding marks for facts, take note of the sub-maxima indicated,
especially if candidates do not make use of 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.)
16.9 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 guidelines.
16.10 16.10.1 Award TWO marks for complete sentences. Award ONE mark for
phrases, incomplete sentences and vague answers.
16.10.2 With effect from November 2015, the TWO marks will not
necessarily appear at the end of each completed sentence. The
ticks(√) will be separated and indicated next to each fact, e.g.
'Product development is a growth strategy√, where businesses aim
to introduce new products into existing markets.'√
This will be informed by the nature and context of the question, as
well as the cognitive verb used.
16.11 With effect from November 2017, the maximum of TWO (2) marks for facts
shown as headings in the marking guidelines, will not necessarily apply to
each question. This would also depend on the nature of the question.
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QUESTION 1
1.1 1.1.1 A√√
1.1.2 C√√
1.1.3 A√√
1.1.4 D√√
1.1.5 D√√ (5 x 2) (10)
BREAKDOWN OF MARKS
QUESTION 1 MARKS
1.1 10
1.2 10
1.3 10
TOTAL 30
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2.3
2.3.1 - Mara overstated the returns made in the previous years. √
- The business has experience decline in sales due to the bad reputation
caused by negative employees√ (2x1) (2)
2.3.2 The positive impact of buying an existing business
- It is easy to raise finance√ if the business has a good history. √
- The business is able to make immediate cash flow√ because it has already established
customers. √
- It is easy to penetrate the market √because distribution channels and supply links are
already established. √
- Any other relevant answer related to the positive impact of acquiring existing business.
Max (6)
2.4
2.4.1 -Outsourcing is when a business pays another √business to perform an
activity that the business could perform. √
- Any other relevant answer related to outsourcing. Max (2)
2.4.2 The legal implications of outsourcing
- The outsourcing company has the responsibility of paying √the outsource
provider. √
- -The outsource provider has the responsibility of delivering the service√ to the
outsourcing company, as agreed. √
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BREAKDOWN OF MARKS
QUESTION 2 MARKS
2.1 4
2.2 6
2.3.1 2
2.3.2 6
2.4.1 2
2.4.2 6
2.5 6
2.6 8
TOTAL 40
QUESTION 3: BUSINESS ROLES
3.1 External stress factors
- Changes in the organisation√
- Unreasonable targets√
- Job insecurity√
- Weak management√
- Pressure at work√
- Any other relevant answer related to external stress factors
Mark the first FOUR (4) only. (4x1) (4)
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Motivation:
- Managing changes can be established by creating a sense of urgency
among employees to deal with the change. √
Name (1x2) (2)
Motivation (1x1) (1)
Max (3)
3.3.2 Other steps that can be used by the model identified in 3.3.1 to
manage changes related to business crises
- Management and employees must work together. √√
- Create a clear vision for the changes√√
- Communicate and explain the vision to all employees. √√
- Make it possible for all the employees to respond to the vision√√
- Plan and create short term goals and successes√√
- Combine all improvements and produce even more change√√
- Make new approaches part of the business’s standard procedures√√
- Any other relevant answer related to steps of John Kotter’s model. Max (8)
NB: Consider options from other textbooks.
3.4 Aspects to be considered when taking a good decision about the business
- Financial implications√
- Legal implications√
- Ethical implications√
- Employees√
- Community√
- Any other relevant answer related to aspects to be considered when taking decisions.
Max (5)
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BREAKDOWN OF MARKS
QUESTION 3 MARKS
3.1 4
3.2 8
3.3.1 3
3.3.2 8
3.4. 5
3.5 12
TOTAL 40
QUESTION 4: MISCELLANEOUS TOPICS
BUSINESS VENTURES
4.1
4.1.1 Royalties√√
4.1.2 Franchise agreement√√
4.1.3 Goodwill√√ (3x2) (6)
4.2 THREE ways to transform the business plan into action plan
- Decide on the outcomes needed. √√
- Identify the people responsible for the different tasks. √√
- Describe the policies and procedures to guide all decisions and actions. √√
- Define the timelines to measure progress and success. √√
- Any other relevant answer related to transformation of business plan to action plan.
Mark the first THREE (3) only. (3x2) (6)
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BUSINESS ROLES
4.5 Ways in which professional, responsible and ethical business practice should
be conducted.
- Businesses should treat all employees equally. √√
- Plan properly and put preventative measures in place. √√
- Pay fair wages/salaries which is in line with the minimum requirements of the BCEA/
remunerate employees for working overtime/during public holidays. √√
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BREAKDOWN OF MARKS
QUESTION 3 MARKS
4.1 6
4.2 6
4.3 8
4.4. 4
4.5 8
4.6. 8
TOTAL 40
5.1 Introduction
- Various factors need to be considered before deciding on the form of ownership. √
- It is important to know the characteristics of different forms of ownership√
- The forms of ownership determine the size of the enterprise. √
- Any other relevant introduction related to forms of ownership. (2x1) (2)
Max (12)
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5.5 Compare the benefits and challenges of a public company to a sole trader
5.5.1
Legal status Company Sole trader
and liability - Shareholders have no direct - Owner has direct legal
legal responsibility√ because of responsibilities√ because the
the separate entity clause. √ business is not separated from the
- The liabilities are limited to the owner. √
business√, the owner is not liable - The liabilities of the business are
for the debts of the business. √ unlimited, √ if the business is
- The names are protected in the indebted the owner will be affected.
company√. √
- Can only protect their names by
registering a trademark√
- Large amount of paper work in - Registration is not required√
the registration process√
- There are legal constraints and - There is less accountability √
more accountability√ because of because the owner is responsible
the business is run by the for running the business√
directors on behalf of the
shareholders√
- Any other relevant answer - Any other relevant answer related
related to challenges of company to challenges of sole trader
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Conclusion 2
INSIGHT
Layout 2
Analysis 2
Synthesis 2
Originality 2
TOTAL MARKS
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.
6.1 Introduction
- Creative thinking is the process that is used to generate new ideas to solve the
business problems. √
- Problem solving skills will always assist the business to achieve its owned objectives
and goals that is making profit√
- There are different techniques that t the business can use to solve challenges.√
- Any other relevant introduction related to creative thinking. (2x1) (2)
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6.6 CONCLUSION
- Creative thinking is important to maintain competitive edge. √√
- It is important to all employees so as to understand the ever changing business
environment. √√
- Any other relevant conclusion related to Creative thinking, problem solving steps,
Delphi techniques, ways of working with others to solve problems and acquiring
creative thinking skills. (1x2) (2)
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Response Type
Question nr