NATIONAL

SENIOR CERTIFICATE

GRADE 10

BUSINESS STUDIES
KGETLENG AREA OFFICE

PAPER
KGETLENG AREA 1
OFFICE

MEMORANDUM

JUNE 2018

MARKS: 100

This memorandum consists of 10 pages.

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SECTION A COMPULSORY

QUESTION 1
1.1
1.1.1 D √√
1.1.2 C √√
1.1.3 B √√
1.1.4 D √√
1.1.5 B √√
(5x2) (10)
1.2
1.2.1 C √√
1.2.2 F √√
1.2.3 H √√
1.2.4 B √√
1.2.5 D √√
(5x2) (10)
TOTAL SECTION A [20]

SECTION B
Aswer any TWO QUESTIONS from this section.

QUESTION 2
2.1 Business Resources
2.1.1 Human resources√√ (2)
2.1.2 Physical resources√√ (2)
2.2 Market Environments
2.2.1 Components of Market environments
Regulators√√ (2)
Competitors√√ (2)
2.2.2 Explanation on Components of Market Environment
Regulators
 Aan organization that ensures that the code of conduct and rules of fair
business pracices are adhered to. √√ (2)
Competitors
 A business that sells the same/similar goods/services to consumers. √√
(2)
2.3 Elements of Macro environments
2.3.1 Physical environment
 The physical environment consists of water, raw materials and climate
needed to produce goods and services. √√
 Includes also infrastructure such as roads, railways, bridges, airports, water
pipelines and piwer lines. √√

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 Businesses should decrease the negative effects of pollution e.g. safe ways
to get rid of waste materials. √√
 Find alternative energy sources such as solar energy and wind energy. √√
 Treat the physical environment responsibly e.g. recycling materials and
using wood from sustainable forests. √√
Any 2 x 2 (4)

2.3.2 Political environment

 Unstable government with poor relations between government and the
business world will influence the business negatively. √√
 The governing party influences all businesses. √√
 Decisions made by politician’s influences businesses. √√
 Politicians such as Ministers of different State Departments make laws that
must be implemented by businesses. √√
 Decisions made for example by the Minister of Finance during the budget
speech influences businesses e.g. 15% VAT. √√
 There are also a variety economic measurements like foreign exchange
control, reducing inflation, etc that are implemented through political
decision-making. √√
Any 2 x 2 (4)
[20]
QUESTION 3

3.1 Business Operations

3.1.1 Adminisrtaion function√√ (2)
3.1.2 Financial function√√ (2)
3.1.3 Human Resource function√√ (2)

3.2 Legislations relevant to Purchasing Department

 National Credit Act√
 National Consumer Protection Act√
Any 2 x 1 (2)
3.3 Strengths and Weaknesses that have impact on the success of the business
3.3.1 Weakness√√ (2)
3.3.2 Weakness√√ (2)

3.4
Business function Small business Large business
3.4.1  Limited funding and  Mass production and
Production function resources to take advantage extensive use of technology.
of mass production√√ √√
Sub max 2  Division of labour is
possible. Sub max 2

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3.4.2  Marketing is very expensive  Big budgets are available for

Marketing function and small campaigns do not marketing and employees
always reach the full target with lots of lots of
audience. √√ experience and expertise
 Focused but quality often ensure that the target
compromised√√ market is reached. √√
 Expertise to ensure to
Sub max 2 ensure good quality. √√
Sub max 2
Max (8)
[20]
QUESTION 4
4.1 Classify following businesses according to the appropriate sectors:
Business Primary Secondary Tertiary Informal Public Private
4.1.1 Eskom √
4.1.2 Street vendor √
4.1.3Marikana mines √
4.1.4 Advertising agency √
Max (4)
4.2. Explain any TWO of the four tasks of the general management function of the
business.
Planning √√
 It involves the process of setting goals; √ developing strategies; and outlining
tasks to accomplish the enterprises goals. √
 Planning is the processes that will take√ you from where the business is to where it
plans to go to√.
 In planning, the manager looks ahead at the future to determine the objectives that
the business wishes to achieve.√
 The manager also determines√ the activities that must be carried out to meet the
businesses objectives.√
 Planning is done in all departments√ by all employees with the objectives of the
company in mind. √
 ( Any other relevant answer)
Heading 2
Explanation 2 Sub
max (4)
Organising√ √
 Refers to the process of breaking√ a plan down into smaller tasks√
 Organising is necessary to put √ a plan into action. In organising a manager
determines√ which employee must take responsibility for which activity. √
 Any other relevant answer
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Heading 2
Explanation 2
Sub max (4)
Leading√√
 It is the process of inspiring employees√ to carry out their assigned tasks to the
best of their ability. √
 Employees must be guided√ in the right direction so that the business can achieve
its goals. √
 Leading is also motivating employees√ to regard the business’s objectives highly
and to work towards them positively. √
 Any other relevant answer
Heading 2
Explanation 2
Sub max (4)
Controlling and Directing√√
 It means to guide, guidance will help √ subordinates to complete their tasks in
time and correctly.√
 Controlling involves the process of comparing√ actual operating results with the
results that the business wishes to achieve. √
 If the business is not achieving the results√ that it wants to achieve corrective steps
must be taken to put the enterprise on the right track again. √
 Any other relevant answer
Heading 2
Explanation 2
Sub max 4
NOTE: Mark Any 2 Max (8)

4.3 Distinguish between the private and public sector and provide examples.
Private sector Public sector
 Businesses are privately owned √√  Includes are businesses and
 Examples are : sole traders , institutions that are owned by the state
partnership or companies with a profit √√
motive √√  Examples: SAA , Wesgro, Golden
 Aims to make profit. √ √ Arrow bus service √√
 Any relevant answer  Funding is generated by tax. √√
 Any relevant answer
Sub max (4) Sub max (4)
Max (8)
[20]
TOTAL SECTION B [40]
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SECTION C

Choose ONE question from this section

QUESTION 5

INTRODUCTION
 The purchasing function aims to ensure that the business has the necessary assets and
stock available to manage the business successfully. √
 Businesses must adhere to all legislation that concerns the business. √
 Any other relevant answer.
2 x 1 (2)
BODY
Three business environments
Micro
 This is the internal environment of the business. √√
 The business has total control over this business. √√
Market
 This is the environment immediately outside the business. √√
 The business has no control, but can influence this environment. √√

Macro
 This environment is part of the external/outsideenironment of the business.
 The business has no control over this business. √√
Max 12
Purchasing procedure
Purchasing request√√
 The department within the business that needs the asset√compeletes thea requisition and
hands it to the purchasing department. √
Collect information√√
 The procurement department investigates√ possible suppliers of the required item. √
 Can consult through the telephone, catalogues from suppliers, yellow pages, and the
internet or by placing a tender in the newspaper.
Select the most suitable supplier√
 Consider different suppliers√√ by looking at the following: price, quality, and date of
delivery and after sales services. √
Place an order√√
 Can be placed telephonically, √ complete an order form, via email or consult a sales
representative of the supplier. √
Follow up√√
 The procurement department must follow up√ the order with regard to receipt of order,
delivery date, and etcetera. √
Receipt of ordered stock√√
 The supplier must issue a delivery note √to the business when delivering the goods. √
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 Compare the agreed price, √specified goods and ordered number of items on the order
form with the invoice and ensure that all items are delivered as ordered. √
 Differences must be indicated on the delivery note√ before the receiver signs the delivery
note as acknowledgement of receipt. √
Distribution of goods√√
 The stock ordered must be sent to the relevant department, who needs to acknowledge
receipt in writing.
 If it is an asset, √it needs to be captured in the asset register by the relevant department.
√
Pay the supplier√√
 The procurement department hands√ the following documents to the financial department
as instruction for payment: requisition form; order form; invoice from the supplier; delivery
note. √
File documentation√√
 The financial department hands√the above mentioned documents as well as proof of
payment over to the administration department for filing. √
Max 8
Consumer rights as stipulated by the National Consumer Rights Act
 right to choose √
 right to information √
 right to accountability from suppliers√
 right to fair and responsible marketing√
 right to fair and reasonable terms and conditions√
 right not to be discriminated against, unfairly√
 Any other relevant answer Max 6
Differences between the public and the private sector
FORMAL SECTOR INFORMAL SECTOR
 Comprises large, legally registered business.  Are not registered. √√
√√
 Complies with all required regulations and  Do not usually keep accounting records.
laws applicable to them√√ √√
 Not easy to enter this sector as businesses  Do not require qualifications or specialized
have to be legally registered. √√ skills. √√
 They pay tax. √√  Do not pay tax. √√
 Employees enjoy protection provided by  Employees are not protected and can be
labour laws. √√ exploited. √√
 Small, medium and large size operations. √√  Easy to enter their market. √√
 Made up aof highly skilled, semi-skilled and  Do not require much capital, equipment or
unskilled labour. √√ machinery. √√
 Any other relevant answer.  Any other relevant answer.
Sub max 4 Sub max 4
Max 8
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CONCLUSION
 The business must be fully aware of the consquences of non-compliance to the
Consumer Protection Act. √√
 Any other relevant answer.

BREAKDOWN OF MARK ALLOCATION

DETAILS MAXIMUM TOTAL
Introduction 2
Body:
Business Environments 12
Purcahsing procedure 8 Max 32
Consumer rights 6
Differences between the Formal and Informal sector 8
Conclusion 2
Insight
Layout 2
Analysis,Interpretation 2
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.
Zero where requirements are not met at all.
QUESTION 6: BUSINESS OPERATIONS

INTRODUCTION

 Quality refers to the standard of something measured against other things of a similar
kind.√
 The departments of a business is related to the different business functions and there for
each function must perform at its best to ensure quality of the business performance.√
 Quality management is the way the business must conduct quality in the various business
functions.√
 Quality management must be done in an efficient and reliable manner.√
 Any relevant introduction
(2x1) (2)
BODY
Describe the concept of quality management:
 Quality management includes quality control, quality assurance and quality improvement.
√
 it starts with proper planning, organizing, leading and controlling but does not end there. √
 The concept of total quality management was developed to cover all the functional
management areas as well as the employees in the business. √
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 Any other relevant introduction.

(2x1) (2)
Discuss the role of management in the success of a business
 It is to create a suitable mission and vision√ for the business enterprise. √
 Organizing employees√ in the most efficient way. √
 Demonstrating effective leadership. √
 Controlling all processes. √
 Communicating with employees. √ Involving employees in decision making processes. √
 Instituting disciplinary action if necessary. √
 It is to take effective decisions. √
 (Any other relevant answer)
Max (10)
The role of quality in the following business functions:
Financial Function
 Obtaining capital from the most suitable sources available. √√
 Drawing up budgets. √√
 Ensuring that financial records are up to date. √√
 Investigating strategies to increase profitability. √√
 Investing surplus funds effectively. √√
Max (6)

Administration Function
 Applying technology efficiently. √√
 Collecting data and information. √√
 Ensuring that captured data or information is accurate. √√
 Processing data and information. √√
 Making information available to management so that management can react to
opportunities and threats. √√
Max (6)
Human Resources Function
 Effective recruitment to attract the best candidates. √√
 Fair selection processes. √√
 Employee development to keep up with changes in technology and in the industry.
 Employee retention and training. √√
 Fair remuneration. √√
Max (6)

Production
 Choosing a suitable production system. √√
 Doing regular quality control. √√
 Maintain equipment. √√
 Adhering to all safety procedures and regulations to contribute to the safety of all factory
workers. √√
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 Performing inspections on a regular basis. √√

Max (6)

Recommend ways on how the PUBLIC RELATIONS FUNCTION can impact positively
in a large business.
 Shape the public’s opinion regarding the business√ because of a favourable image will
help to sell products√, attract suppliers√ and satisfy shareholders.√
 Promote the products√ which the business sells in supporting the sales department.√
 Gain the goodwill√ and support of the community.√
 Attract√ the best employees.√
 Create a positive perception√ among staff members towards the business.√
Max (10)

Conclusion
 Quality management in various business functions ensure productivity.√√
 If productivity prevail the business can attract more customers and therefor it will ensure
profitability.√√
 Any relevant conclusion.
Max 2
[40]
BREAKDOWN OF THE MARK ALLOCATION
DETAILS MAX MARKS SUBTOTAL TOTAL
Introduction 2
Concept of quality management 2
Role of management in success of business 10
Role of quality in business functions 24
Positive impact of the public relations 10 50 32
function in large business
Conclusion 2
INSIGHT
Layout 2 8
Analysis 2
Synthesis 2
Originality 2
40

LASO- for each component

Allocate 2 marks if all the requirements are met
Allocate 1 mark if some of the requirements are met
Allocate 0 mark if none of the requirements are met
TOTAL SECTION C: 80
GRAND TOTAL 300

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