XHARIEP DISTRICT COMMON TEST

GRADE 10
BUSINESS STUDIES

MARKING GUIDELINE

MARCH 2022

MARKS: 100

This memorandum consists of 17 pages.

NOTES TO MARKERS

1. Learner’s responses must be in full sentences for SECTION B & C. This would
depend on the nature of the question.

2. A comprehensive memorandum has been provided but this is by no means

exhaustive. Due consideration should be given to an answer that is correct but :
 Uses a different expression from that which appears in the memorandum.
Business Studies
Grade 10 FS/ March2022

 Come from another source.

 Is correct and original.
 Relates to other applicable topics.
NB: There are no alternative answers for Section A.

3. SECTION B

a. If for example, FIVE facts are required, mark the learners FIRST FIVE
responses and ignore the rest of the responses. Indicate by drawing a line
across the unmarked portion or use the word ‘Cancel’.

b. If two facts are written in one sentence, award the learner FULL credit.

c. All questions that require learners to name/list/mention etc., the answers of

learners can be in phrases and not necessarily in full sentences.

d. If the number of facts is not specified, the candidate must be informed by the
nature of the question and the maximum marks allocated.

e. No additional credit must be given for repetition of facts. Indicate with an R.

f. Incorrect numbering of answers will be penalized. This applies to all sections.

g. 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 memo. Only the total for each question should appear in the left hand
margin next to the appropriate question number.

4. SECTION C

a. The breakdown of the mark allocation for essays is as follows :

Introduction
Content MAXIMUM: 32
Conclusion
Insight 8
TOTAL MARKS 40

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b. Insight consists of the following components:

Layout/Structure Is there an introduction, body, proper paragraphs 2
and conclusion?
Analysis and Learner’s ability to break down the question/interpret 2
interpretation it correctly to show understanding of what is being
asked

Marks to be allocated using this guide:

All headings addressed: 1 ( One ‘A’)
Interpretation (16 to 32 marks): 1 (One ‘A’)
Synthesis What relevant parts of the question would you have 2
included in the answer? Are there decisions made
from a combination of relevant points?)
 No relevant facts = 0 marks ( 2 –S)
 Some relevant facts = 1 mark ( 1 –S)
 All facts relevant = 2 marks ( No –S)
Originality Examples, recency of information, current trends 2
and developments

c. If the learner identifies/interprets the question INCORRECTLY, then he/she

may still obtain marks for insight.

d. Indicate insight in the left-hand margin with a symbol e.g.

(L, A, S and/or O)

e. Components of the insight are indicated at the end of the suggested answer
for each question.

f. Take particular note of the repetition of facts also in this section. Indicate
with an R.

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SECTION A (COMPULSORY)
QUESTION 1

1.1 Multiple choice

1.1.1 C√√
1.1.2 D√√
1.1.3 B√√
1.1.4 B√√
1.1.5 C√√ (5x2)(10)

1.2 Matching columns

1.2.1 C√√
1.2.2 D √√
1.2.3 E√√
1.2.4 A√√
1.2.5 F√√
(5x2)(10)

TOTAL SECTION [20]

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SECTION B

QUESTION 2 (Business Environments)

2.1.1 “The owner strives to get the business to be a leading name in clothing

design” √ (1)

2.1.2 “….strive to dress every customer to perfection”√ (1)

2.1.3 “…. she still plans to design and manufacture 200 dresses by the end of

November.”√ (1)

2.2 Components of business environments

Components Business Environments

Organizational Culture√ Micro√
Suppliers√ Market√
Competitors√ Market√
Economic Element(Exchange Macro√
Rate)√
Note: 1. Accept any order

2. Mark the first FOUR only.

3. Components and Business Environment MUST link.

4. Do not award marks for components or environments alone.

5. Do not award marks for components that are not part of the scenario.
(Max 8)

2.3 Reason why NGO’s and CBO’s form part of the market.

 Employ workers√
 Supply√ and consume goods and services√
 Act as intermediaries√
 Any other relevant answer. (Max 3)

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2.4 The difference between the Management and Leadership

MANAGER LEADER
 Holds a particular position in an  Does not necessarily hold a
organisation. √ managerial position- any employee
 A Manager will hold this position can be a leader. √
as a result of a vacant managerial  A Leader emerges when there is a
position in an organisation. √ need for leadership in a group. √
 Become a manager through  Is usually part of a team and helps
education and knowledge. √ to perform tasks. √
 Gives instructions to subordinates  Usually inspires team members to
and monitor whether the perform. √
instructions are carried out. √  Leader leads by example√
 Has the authority to tell the  Leader is people - orientated√
subordinates what to do. √  Influences√ human behaviour√
 Manager is task- orientated√  Communicates√ by means of
 Guides√ human behavior√ interaction/behavior/vision/values/
 Communicates√ through charisma√
management functions, eg. Line  Encourages new ideas√ to increase
function√ productivity√
 Administers  Inspires staff to trust and support√
plans/programs/tasks√ to reach each other√
targets√  Lead by example/trust/respect√
 Controls systems and  Motivational/Inspirational√ in their
procedures√ to get the job done√ approach√
 Manage by planning/organizing/  Any other relevant answer relating
leading/control√ to a leader/ leadership
 Instructional√ in approach√
 Any other relevant answer relating
to a manager/ management
Sub max(3)
Sub
max(3)
NOTE: 1. The answer MUST be in tabular format.

2. Mark only the first THREE of each. (Max 6)

[20]
QUESTION 3 (Business Operations)

3.1 Levels of Management

Top Management √

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“His daughter, Jacklin was appointed as the new Chief Executive Officer of

Bayman’s” √ (Sub max 2)

Middle Management √

“The Human resource department is run by her brother, Tim” √ (Sub max 2)

Note: 1. Do not award marks for the quote if the level has been identified

incorrectly.

2. Mark the first TWO levels only. (Max 4)

3.2 Reasons why business may need finance

 Start-up√: Borrowing money√ in order to start a business√

 Cash flow√: Money to cover the running costs of a business √while waiting for
outstanding payments(Day to day running of the business)√
 Replacement√: Money to replace computer, machinery and equipment.√
 Expansion√: Money to grow a successful business(new products or new
branches)√
 Any other relevant answer. (Max 8)

3.3 Main Management tasks

Planning√:

 Process of deciding how, who, when and where√ to use resources√

 Forms part of the process to set √and achieve goals√
 An ongoing process√
 Any other relevant answer. (Sub max 2)

Organising√:

 Part of implementing plans√

 Process of ensuring that everyone knows what, when and how to do things√
 Ensuring that the right people are in place√ to carry out the right functions√
 Refers to the way in which employees in an enterprise are arranged√ to carry out
plans, responsibilities and duties.√

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 Process of deciding what needs to be done√ and organizing resources to

achieve goals.√
 Any other relevant answer (Sub max 2)

Leading√:

 Process of providing a clear vision√ and goals for employees√

 Process of delegating tasks√ to sub-ordinates√
 Providing strategic direction√ and applying critical thinking√
 Guide employees√ through duties and responsibilities√
 Involves inspiring employees√ to achieve business’s goals√
 Any other relevant answer (Sub max 2)

Controlling√:

 Systems to ensure that standards are met√/Tasks carried out as planned√

 Involves comparing actual results√ with the goals set by management.√
 Putting mechanisms in place√ where systems are not working√
 Any other relevant answer (Sub max 2)
Note: 1. Mark the first FOUR management tasks only (Max 8)
[20]

Question 4 (Miscellaneous)

4.1 Organizational resources

 Capital resources√
 Human resources√
 Natural resources√
 Technological resources√
 Technical resources√
 Entrepreneurial resources√

Note: Mark the first TWO only (Max 2)

4.2 Opportunities and threats

 Opportunities and threats√ arise from outside of a business√

 Neither opportunities, nor threats√ can be controlled by a business√
 An opportunity is a trend or occurrence√ that may have a positive effect on a
business√

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 A threat is a trend or occurrence√ that may have an negative effect on a

business√
 Opportunities and threats can arise from, for example:
- Change in legislation or new legislation√
- Competitors entering or exiting a market√
- A gap that suddenly appears in the market√
 Any other relevant information or practical examples (Max 6)

4.3 Strategies to deal with Natural environment of macro environment

 Business need to ensure that their waste does not pollute the environment√√
 They need to recycle and avoid using substances that harm the environment√√
 Business need to use resources sparingly and prevent unnecessary wastage√√
 Efficient control of production is one way to decrease waste√√
 Any other relevant answer (Max 2)

4.4 Business functions

4.4.1 Marketing√√ (2)

4.4.2 Public Relations√√ (2)

4.5 Organisational structures

4.5.1

 A business’s structure refers to the way in which employees√ in a business are

organized√
 The structure explains the responsibility√ and displays the authority of each
manager√
 The structure indicates the flow of instructions √and feedback in a business.√
 Any other relevant answer (2)

4.5.2 Functional organizational structure

 Similar to line organization√, but provides for larger businesses√

 The same type of work is grouped together√ in functional departments√
 Each department is managed by a manager √who is an expert in his/her
field√
 Each department performs its activity√ for the whole business√, for example,
the marketing department handles the marketing for the entire business√
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 Any other relevant information (4)

[20]

TOTAL SECTION B: 40

SECTION C

NOTE: Accurately indicate the number of the chosen QUESTION.

QUESTION 5

5.1 Introduction

 Goods move through a chain of production. √

 Each stage gives added value to the product√
 It is very common to distinguish businesses by industry or sector√
 Businesses within them exist to provide goods or services√
 Any relevant introduction (2x1)(2)

5.2 Different sectors

 Primary Sector√ – Mining√

 Secondary Sector √– Clothing manufacturing√
 Tertiary Sector√ – Transport services√ (Max 6)

5.3 Explanation of sectors and relationship between them

5.3.1 Primary Sector:

 Obtain natural resources√ from nature√/Extracts raw material√ from nature√

 Natural resources are sold to the secondary sector√ as raw materials√
 Examples include: Mining, fishing, agriculture and forestry√ (Sub max 4)

Secondary Sector:

 Convert raw materials√ into final goods√ for consumption by the consumers√
 Also known as industrial sector√
 Links√ primary sector and secondary sector√

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 Examples include: Manufacturing industry, construction industry, generation

of electricity etc.√ (Sub max 4)

Tertiary Sector:

 Refers to all industries that offer services√ to other businesses and

consumers√
 Bring goods and services√ within reach of consumers√
 Examples include: Retailers, wholesalers, banks, insurance, transportation,
tourism, hospitality industry etc.√
 Also know as service industry√ (Sub max 4)

Note: 1. Do not award marks for examples from the scenario

5.3.2 Relationship between sectors:

 All of the sectors are interdependent√, in other words they are interlinked.√
 Manufacturers of primary sector sell their products to industries in the
secondary sector.√
 Most businesses in the secondary sector sell their products to the tertiary
sector√
 Some businesses in the secondary sector also sell their products to other
businesses in the secondary sector.√
 A factory bottling cold drinks could not operate without telecommunications
and electricity because cold drinks need to be refrigerated and marketed to
retailers (Example)
 Many agricultural businesses need finance to operate their business and
transport to get their produce to the consumers (Example) (Sub max 4)

Note: 1. Award marks for any practical example by learner that assists the
explanation of the relationship between sectors. (Max 16)

5.4 Differentiate between formal and informal sectors

Formal Sector Informal Sector

Refers to all registered businesses√, Refer to those businesses that are not

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who legally registered √and do not pay tax on

pay taxes to the Government√ the income of the business√
Acitivities are included in the GDP Activities are not included in GDP figures√
figures
of the country√
Also known as primary economy√ Also known as second economy√
Products supplied are legal√ Ilegal goods are sometimes sold√
Products supplied are guaranteed√ Quality of goods sold by the informal
sector √cannot be guaranteed√
Faulty goods can be returned√ Faulty goods cannot be returned√
Difficult to enter√ Easy to enter√
Jobs are scarce√ Provides jobs and an income to people√
who otherwise would have neither√
Examples: Manufacturing, trading, Examples: street vendors, car guards,
banking, insurance, large retail spaza shops, other home-based industries
companies etc√ etc. √
Any other relevant answer Any other relevant answer
(Sub max (Sub max
6) 6)
Note: 1. Answer does not have to be in tabular format

2. The difference must be clear

3. Award a maximum of SIX marks if the difference is not clear/ Mark

either formal or informal sector. (Max 12)

5.5 Characteristics of Public and Private Sectors

Public Sector Private Sector

Refer to those industries√ that are Privately owned businesses√ with the
controlled by the government√ and main aim of businesses√ is to meet the
offer support services to the demand of consumers√ in order to make
community√ a profit√
These services are under-valued by The owners raise the capital√ to start the
the market √and government must business√
therefore render the services to the
citizens√
These services are often essential They also share in the profit of the
services√ eg. Waste removal, business√
education, law enforcement, public
schools, public hospitals etc.√
Services are more affordable√ than When government sell a business in the
services delivered by private sector√ public sector to private sector the process
is known as privatisation√
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All citizens have access √to services Examples: Banks, Restaurants, Hotels,
delivered by the public sector√ Retail stores, etc√
The motive of the public sector is not Offers more variety than the public
to make a profit√ but offer a service√ sector√
Pays√ low remuneration√ Pays√ competitive remuneration√
Offers more√ job security√ Less√ job security√
Any other relevant answer related to Any other relevant answer related to the
the public sector private sector
Sub max 6 Sub max 6
Note: 1. Answer does not have to be in tabular format (Max 12)

5.6 Conclusion

 Many businesses owe their success to the efficient relationship between these
sectors √√
 Accept any relevant response related to the conclusion of the topic. Max (2)

TOTAL 40 marks

Marks breakdown

Introduction 2 marks 2 marks

Conclusion 2 marks 2 marks
Layout 2 marks 8 marks
Analysis 2 marks
Synthesis 2 marks
Originality 2 marks
Content
Different Sectors/examples 6 marks
Sectors explained and 16 marks
relationship
Formal and Informal 12 marks
sectors
Public and private sectors 12 marks 32 marks

Total: 40

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QUESTION 6

6.1 INTRODUCTION

 The purchasing department is responsible for ordering, sourcing, buying and

finalizing all goods and services needed to operate the business√.
 The purchasing department has a procedure that must be followed when
ordering or buying goods and services√
 Purchasing is sometimes called procurement or supply-chain management√
 Quality refers to the features and characteristics of goods√
 A quality good does what it is supposed to do√
 A credit provider is a business or person that lends money to another person or
business.√
 The National consumer commission can investigate market practices of
suppliers√
 Any other relevant answer as an introduction.
(2x1)(2)

6.2 Activities of purchasing function

 Making contact with the business in other departments to determine

departments needs√√
 Continuously look for the best suppliers√√
 Ensure that there is enough stock available√√
 Negotiate best possible terms of payment with suppliers√√
 Place orders with suppliers and follow up on delivery times√√
 Sending damaged goods back to the supplier and ensure these products are
replaced√√
 Any other relevant answer. (Max 10)

6.3 Importance of stock control

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 Enables business to determine at any stage√ the amount/value of stock√

 Businesses can check the cost√ and selling price of products√
 Ensure that there is enough stock√ to meet the normal demand of
customers√
 Keep the correct levels of stock√ on hand√
 Record the cost prices√ and selling prices of stock√
 Identify theft in the business√ when physical stock count is compared√
with the electronic stock control system/stock records√
 Any relevant answer (Max 12)

6.4 Distinguish between quality control and quality assurance

QUALITY CONTROL QUALITY ASSURANCE

Inspection of the final product√ to ensureCarried out during and after the
that it meets the required standards√ production process√ to ensure required
standards have been met at every
stage of the process√
Includes setting targets/measuring Ensure that every process is aimed at
performance√ and taking corrective getting the product right the first time√
measures√ and prevent mistakes from happening
again√
Any other relevant answer related to Any other relevant answer related to
quality control quality assurance
Sub max 4 Sub max 4
Note: 1. The answer does not have to be in tabular format but the distinction

must be clear.

2. Allocate a maximum of FOUR marks if the distinction is not clear. Mark

either quality control or assurance. (Max 8)

6.5 Impact of NCA and CPA

6.5.1 Impact of NCA

Positives/Advantages

 The whole credit process is transparent √e.g. both businesses and

customers know their responsibilities.√
 Lower bad debts√ resulting in better cash flow√
 Increases cash sales√ as credit can only be granted to qualifying
customers√

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 Protects business√ against non-paying consumers√

 Prompt businesses to settle their debts on time√ to maintain good credit
scores√
 Curb reckless lending√ by financial institutions√
 Any other relevant answer to positive impact of NCA on business

AND/OR

Negatives/Disadvantages

 Businesses are forced to budget√ to keep more cash/have enough cash

on hand√ for stock purchases√
 Businesses can no longer carry out√ credit marketing√
 Leads to loss of sales√ as many businesses may no longer qualify to buy
on credit√
 Businesses can only buy limited stock√ as credit is not available resulting
in loss of customers√
 Any other relevant answer related to negative impact of NCA on
businesses (Sub max 8)

6.5.2 Impact of CPA

Positives

 Resolve disputes fairly√ through National Consumer Commission√

 Business may build a good image√ when they ensure that consumer
rights are not violated√
 Gain customer loyalty√
 Businesses less likely to have court cases against them√
 Businesses may be safeguarded√ from dishonest competitors√
 Prevent larger businesses√ from undermining smaller ones√
AND/OR

Negatives

 Businesses have to replace√ faulty items√

 They must disclose more information√ about products and processes
 Confidential business information√ may be available to competitors√

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 Consumers can take advantage of businesses√ and return goods when it

is not necessary√
 Processes and procedures required√ can be expensive and time
consuming√
 Businesses feel unnecessarily burdened√ by legal processes√
 Penalties for non-compliance√ may be very high√
 Staff need to be trained√ which increase costs√
 Administration costs increase√ as legal contracts need to worded in plain
language√ (Sub max 8)

(Max 16)

6.6 Conclusion

 Businesses should always keep sufficient stock available at all times to

meet the demand of customers√√
 Businesses should comply with NCA to minimise its negative impact on
their operations√√
 Quality includes learning from mistakes and continuously improving all
aspects of the business√√
 Any other relevant conclusion related to purchasing, quality and NCA and
CPA Max (2)

BREAKDOWN OF MARK ALLOCATION

DETAILS MAXIMUM TOTAL

INTRODUCTION 2 MAX
Activities of purchasing 10 32
function
Importance of stock control 12
Quality control and Quality 8
assurance
Impact of NCA and CPA 16
CONCLUSION 2
INSIGHT
Layout 2
Analysis 2
Synthesis 2

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Originality, examples 2
TOTAL MARKS 40

TOTAL SECTION C: 40

GRAND TOTAL : 100

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