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 NATIONAL
SENIOR CERTIFICATE

GRADE 10

NOVEMBER 2020

BUSINESS STUDIES P1
MARKING GUIDELINE
(EXEMPLAR)

MARKS: 150

This marking guideline consists of 25 pages.

2 BUSINESS STUDIES P1 (EC/NOVEMBER 2020)

NOTES TO MARKERS

1. 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
• Comes from another source
• Original
• A different approach is used

NOTE: There is only ONE correct answer in SECTION A.

2. Candidates9 responses must be in full sentences for SECTION B and C.

However, this would depend on the nature of the question.

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 8sub-max9 is used to facilitate the allocation of marks within a question
or sub-question.

5. The purpose of circling marks (guided by 8max.9 in the breakdown of marks) on

the right-hand side is to ensure consistency and accuracy in the marking of
scripts.

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 8max9 in
the marking guideline. 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. Incorrect numbering of questions or sub-questions in SECTIONS A and B will be

severely penalised. Therefore, correct numbering is strongly recommended in all
sections.

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

10. 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.)

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(EC/NOVEMBER 2020) BUSINESS STUDIES P1 3

11. 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.

Cognitive verbs, such as:

11.1 Advise, name, state, mention, outline, motivate, recommend, suggest, (list
not exhaustive) do not usually require much depth in candidates9
responses. Therefore, the mark allocation for each statement/answer
appears at the end.

11.2 Define, describe, explain, discuss, elaborate, distinguish, differentiate,

justify, devise, 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.

12. Mark only the FIRST answer where candidates offer more than one answer for
SECTION B questions that require only one answer.

13. SECTION B

13.1 If, for example, FIVE facts are required, mark the candidate9s FIRST FIVE
responses and ignore the rest of the responses. Indicate by drawing a
line across the unmarked portion or use the word 8Cancel9.

NOTE: This only applies to questions where the number of facts is

specified.

13.2 If two facts are written in one sentence, award the candidate FULL credit.
Point 13.1 above still applies.

13.3 If candidates are required to provide their own examples/views, brainstorm

this to finalise alternative answers.

13.4 USE OF THE COGNITIVE VERB AND ALLOCATION OF MARKS:

If the number of facts is specified questions that require candidates to

8explain/discuss/ describe9 will be marked as follows:
• Fact 2 marks (or as indicated in the marking guideline)
• Explanation 1 mark
The 8fact9 and 8explanation9 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 marks
allocated in the marking guideline.

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4 BUSINESS STUDIES P1 (EC/NOVEMBER 2020)

13.5 ONE mark will be awarded for answers that are easy to recall,
requires one-word answers, or is quoted directly from scenario/case
study. This applies to SECTIONS B and C in particular (where
applicable).
14. SECTION C
14.1 The breakdown of the mark allocation for the essays is as follows:

Introduction
Content Maximum: 32
Conclusion
Insight 8
TOTAL 40
14.2 Insight consists of the following components:
Layout/ Is there an introduction, body, proper paragraphs and a
Structure conclusion? 2
Analysis and Is the candidate able to breakdown the question into
interpretation headings/sub-headings/interpret it correctly to show
understanding of what is being asked?
Marks to be allocated using this guide.
All headings addressed: 1 (One 8A9)
Interpretation (16 to 32 marks): 1 (One 8A9) 2
Synthesis Are there relevant decisions/facts/responses made
based on the questions?
Marks to be allocated using this guide:
No relevant facts: 0 (Two 8-S9)
Some relevant facts: 1 (One 8-S9)
Only relevant facts: 2 (Zero/No 8-S9) 2

Option 1: Where a candidate answers 50% or more of

the question with only relevant facts; no 8-S9
appears in the left margin. Award the
maximum of TWO (2) marks for synthesis.

Option 2: Where a candidate answers less than 50%

of the question with only OR some relevant
facts; one 8-S9 appears in the left margin.
Award a maximum of ONE (1) mark for
synthesis.

Option 3: Where a candidate answers less than 50%

of the question with no relevant facts; two 8-
S9 appear in the left margin. Award ZERO
mark for synthesis.
Originality Is there evidence of examples, recent of information,
current trends and developments? 2
TOTAL FOR INSIGHT: 8
TOTAL MARKS FOR FACTS: 32
TOTAL MARKS FOR ESS AY (8 + 32) 40

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(EC/NOVEMBER 2020) BUSINESS STUDIES P1 5

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 allocated for layout, if the headings 8Introduction,
Conclusion,9 etc. in 8Insight9 are not supported by an explanation.
4. With effect from November 2017 a candidate will be awarded a
maximum of ONE (1) mark for headings/sub-headings and ONE (1)
mark for interpretation (16 or more out of 32 marks). This applies
specifically to the analysis and interpretation part of insight.

14.3 Indicate insight in the left-hand margin with a symbol e.g. (8L, A, S
and/or O9).

14.4 The breakdown of marks is indicated at the end of the suggested answer
/ marking guideline for each question.

14.5 Mark all the relevant facts until the SUB MAX/MAX mark in a subsection
has been attained. Write SUB-MAX./MAX. after maximum marks have
been obtained.

14.6 At the end of each essay indicate the allocation of marks for facts and
marks for insight as follow: (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

14.7 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 sub-headings are encouraged and contribute
to insight (structuring/logical flow/sequencing) and indicate clarity of
thought.
(See MARK BREAKDOWN at the end of each question.)

14.8 If the candidate identifies/interprets the question INCORRECTLY, then

he/she may still obtain marks for layout.

14.9 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.

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6 BUSINESS STUDIES P1 (EC/NOVEMBER 2020)

14.10 Award TWO marks for complete sentences. Award ONE mark for
phrases, incomplete sentences and vague answers.

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. 8Product development is a
growth strategy √ where businesses aim to introduce new products into
existing markets.9 √
This will be informed by the nature and context of the question, as well as
the cognitive verb used.

14.11 With effect from November 2017, the maximum of TWO (2) marks for
facts shown as heading in the memo, will not necessarily apply to each
question.
This would also depend on the nature of the question.

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(EC/NOVEMBER 2020) BUSINESS STUDIES P1 7

SECTION A

QUESTION 1

1.1 1.1.1 B √√

1.1.2 B √√

1.1.3 D √√

1.1.4 C √√

1.1.5 D √√ (5 x 2) (10)

1.2 1.2.1 market √√

1.2.2 marketing √√

1.2.3 lock-out √√

1.2.4 cash √√

1.2.5 internal √√ (5 x 2) (10)

1.3 1.3.1 F √√

1.3.2 E √√

1.3.3 D √√

1.3.4 I √√

1.3.5 G √√ (5 x 2) (10)

TOTAL SECTION A: 30

BREAKDOWN OF MARKS
1.1 10
1.2 10
1.3 10
TOTAL 30

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8 BUSINESS STUDIES P1 (EC/NOVEMBER 2020)

SECTION B

Mark the FIRST TWO answers only.

QUESTION 2: BUSINESS ENVIRONMENTS

2.1 The meaning of micro-environment.

- This environment is the business itself; √ it consists of all the elements
inside the business. √
- The micro-environment is the smallest environment, √ and is also known
as the internal environment.
- Businesses have full control √ over all the features/elements/
components of the micro-environment. √
- Any other relevant answer related to the meaning of the micro-
environment. Max. (4)

2.2 Importance of a business organogram/organisational structure.

- The organisational structure shows each person9s tasks √ and level of
authority and responsibility. √
- The structure also shows the flow of instruction √ and feedback in the
business. √
- It determines the position of management, √ the departments and the
employees. √
- It determines who reports to whom, √ and which departments fall under
which manager. √
- The structure also indicates the way decisions are taken √ and carried
out. √
- Duties (jobs) with the same function are grouped together √ and
coordinated. √
- Any other relevant answer related to the importance of a business
organogram. Max. (4)

2.3 TWO ORGANISATIONAL RESOURCES

2.3.1 Human resources √√

Motivation: They employ 5 full time workers. √
Physical resources √√
Motivation: They use custom-made freezers to keep products
fresh. √
Financial resources √√
Motivation: They borrowed money from MoneyWise to expand the
business. √ (6)

NOTE: Only mark the FIRST TWO answers.

Do not award marks for the motivation if the type of
resource is incorrect.

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(EC/NOVEMBER 2020) BUSINESS STUDIES P1 9

2.4 Suppliers as a component of the market environment.

- Suppliers are individuals/agents √ who provide the raw
materials/transport/other services to the business. √
- The business requires suppliers to supply the right quality √ and quantity
at the right time. √
- Suppliers play an important role in the success or failure of a business √
e.g. consumers will purchase the product/services from another business
if a supplier is unable to supply a particular product/services. √
- Pricing √ and credit terms must be considered when choosing
suppliers. √
- Any other relevant answer related to suppliers as a component of the
market environment. Max. (6)

2.5 TWO reasons why NGOs and CBOs form part of the market.
- They employ workers √ and supply and consume goods and services. √
- They satisfy important needs √ of the community. √
- They are concerned √ with the welfare of others. √
- Any other relevant answer related to the reasons why NGOs and CBOs
form part of the market. Max. (4)

NOTE: Mark the first TWO reasons only.

2.6 TWO efforts to create an inclusive workforce.

- Develop employment policies that seek to promote inclusivity and diversity
in the workplace. √√
- Treat all employees equally irrespective of gender/race/age/sexual
orientation. √√
- Adhere to laws and regulations that promote an inclusive workforce. √√
- Respect and promote individual cultures in the workplace. √√
- Ensure equal employment opportunities for all groups. √√
- Respect all employees and their contributions in the workplace. √√
- The workforce must represent the demographics of the country. √√
- Ensure that the physical environment accommodates people with
disabilities. √√
- Include women in leadership positions and decision making. √√
- Any other relevant answer related to ways businesses can promote an
inclusive workforce. Max. (4)

NOTE: Mark the first TWO efforts only.

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10 BUSINESS STUDIES P1 (EC/NOVEMBER 2020)

2.7 Impact of crime on the business.

- Loss of profits √ due to stolen goods/damage to property. √
- Security/Insurance cost increases √ as the business tries to protect
itself. √
- Smaller businesses often cannot afford insurance √ and have to replace
the stolen goods themselves at greater loss. √
- Lower profits affect the decision to expand √ and employ more
people/pay higher wages. √
- Business loses skilled employees, √ resulting in a decline in
productivity. √
- Crime causes increase in health costs of employees √ due to injuries or
stress. √
- Discourages foreign investment √ and reduces tourism. √
- Crime brings about unfair competition √ from stolen goods resold at a
lower price. √
- Crime disrupts business activities √ and productivity. √
- Loss of essential equipment √ causing a temporary closure of the
business. √
- Any other relevant answer related to impact of crime on businesses.
Max. (6)

2.8.1 THREATS
- The increase in interest rates caused cash flow problems in the
business. √
- A new competitor opened a salon in the area. √

NOTE: Mark the first TWO threats only. Max. (2)

2.8.2 STRATEGIES
Increase in interest rates
- Try to negotiate for better interest rates. √√
- Pay debt off sooner. √√
- Any other relevant answer related to an increased in interest rates.
A new competitor opened a salon in the area.
- Have better quality products. √√
- Start intensive advertising campaign. √√
- Any other relevant answer related to a new competitor.

NOTE: Mark only the first strategy in each threat. Max. (4)

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(EC/NOVEMBER 2020) BUSINESS STUDIES P1 11

BREAKDOWN OF MARKS
QUESTION 2 MARKS
2.1 4
2.2 4
2.3.1 6
2.4 6
2.5 4
2.6 4
2.7 6
2.8.1 2
2.8.2 4
TOTAL 40 [40]

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12 BUSINESS STUDIES P1 (EC/NOVEMBER 2020)

QUESTION 3: BUSINESS OPERATIONS

3.1 TWO types of organisational structures
- Line √
- Line and staff √
- Functional √
- Project √
- Matrix organisation √
NOTE: Mark the first TWO (2) only. (2 x 1) (2)
3.2 Consumer rights according to the NCA
Consumers have a right to:
- Apply for credit. √√
- Information in one9s official language. √√
- Be protected against unfair discrimination in granting credit. √√
- Be given reasons why an application for credit is refused. √√
- Be informed about the interest rate and any other costs of the proposed
credit transaction. √√
- Receive a copy of a credit contract and a replacement copy when the
consumer asks for one. √√
- Apply for debt counselling if a customer has too much debt. √√
- Any other relevant answer related to consumer rights according to the
NCA. Max. (6)
3.3 BUSINESS FUNCTIONS
3.3.1 - Public relations √√ (2)
3.3.2 Other methods of Public Relations
- Direct contact √√
- Information about the business is passed on to the members of the
public who have dealt with the business previously. √
- Direct contact with employees or telephonic communication is a
popular form of public relations. √
- Brochures √√
- Excellent way of distributing information in a cost-effective way. √
- Exhibitions √√
- The business is introduced to the public and meets existing
customers in shopping centres √
- Social responsibility √√
- The business uplifts the community as the community supports the
business by buying their products. √
- Transit advertising √√
- Advertising on vehicles such as taxis, busses, vans etc. √
- Use of the telephone √√
- A potential customer phones the business to enquire about
something; the person answering the phone is perceived as the
business. √

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(EC/NOVEMBER 2020) BUSINESS STUDIES P1 13

- If the potential customer is pleased with the information that was required,
then that person can become an important customer. √
- Any other relevant answer related to ways to carry out public relations.

NOTE: Do NOT accept social media as an answer.

Mark the first TWO only. Max. (6)

3.4 Interrelatedness of the business functions

- The eight business functions depend on each other √ and are
interrelated. √
- These functions work together as a team √ for the business to be
successful. √
- The general management is directly linked √ to all seven business
functions. √
- The financial and administration functions are responsible for
gathering/storing/processing information √ and financial records. √
- The purchasing, production and marketing functions √ are responsible for
the delivery of goods. √
- The purchasing function buys raw material for the production function √ to
process raw material into finished goods. √
- The marketing function sells the product √ which the production function
has produced. √
- The marketing function promotes the product √ while the public relations
function promotes the business and ensures that there is a good
relationship between the business and the public. √
- All the staff with the right skills and qualifications are appointed √ by the
human resources function. √
- Any other relevant answer related to the interrelatedness of the business
functions. Max. (6)

3.5 TWO reasons why a 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. √
- Replacement √√
- Money to replace computers, machinery and equipment. √
- Expansion √√
- Money to grow a successful business. √
- Any other relevant answer related to why a business needs finance. (6)

NOTE: Mark only the first TWO reasons.

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14 BUSINESS STUDIES P1 (EC/NOVEMBER 2020)

3.6 Differentiate between fixed capital and working capital

FIXED CAPITAL WORKING CAPITAL
- Money to buy fixed assets, √ e.g. - Money used for day-to-day
land and buildings etc. √ activity, √ e.g. trading stock, raw
materials, etc. √
- Finance long term capital - Finance the short-term capital √
needs √ of the business. √ of the business. √
- Examples: capital market, selling - Examples: money market, credit
shares, mortgage bonds etc. √ allowed by suppliers, short
terms loans etc. √
- Any other relevant answer related - Any other relevant answer
to fixed capital. related to working capital
Sub-max. (2) Sub-max. (2)

NOTE: 1. The answer does not have to be in tabular format.

2. The differences do not have to link but it must be clear
3. Award a maximum of TWO (2) marks if the difference is
not clear. Max. (4)

3.7 Impact of the CPA on businesses.

Advantages for businesses
- Enables businesses to resolve disputes fairly through the Consumer
Court. √√
- Businesses may build a good image if they ensure that they do not violate
consumers9 rights. √√
- Businesses may gain consumer loyalty, if they comply with CPA. √√
- Businesses are less likely to have court cases against them for consumer
rights9 violations. √√
- Businesses may be protected if they are regarded as consumers. √√
- They may be safeguarded against dishonest competitors. √√
- Prevents larger businesses from undermining smaller ones. √√
- Any other relevant answer related to the advantages of the CPA for
businesses.

AND/OR

Disadvantages for businesses

- Faulty items may be replaced/repaired/money refunded if the fault occurs
within six months after purchase. √√
- Consumers can take advantage of businesses and return goods when
it is not necessary to do so. √√
- Processes and procedures required of businesses can be expensive and
time consuming. √√
- Some businesses feel unnecessarily burdened by the required
processes. √√
- Penalties for non-compliance may be very high. √√

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(EC/NOVEMBER 2020) BUSINESS STUDIES P1 15

- Businesses need to train staff and consult legal experts, which can be
expensive for smaller businesses. √√
- Provisions in the Act increase the risks for unforeseen claims and
lawsuits. √√
- Administration costs increase as legal contracts need to be worded in
plain language. √√
- Any other relevant answer related to the disadvantages of the CPA for
businesses. Max. (8)

BREAKDOWN OF MARKS
QUESTION 3 MARKS
3.1 2
3.2 6
3.3.1 2
3.3.2 6
3.4 6
3.5 6
3.6 4
3.7 8
TOTAL 40 [40]

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16 BUSINESS STUDIES P1 (EC/NOVEMBER 2020)

QUESTION 4: MISCELLANEOUS

BUSINESS ENVIRONMENTS

4.1 Components of the macro environment

4.1.1 Social √√

4.1.2 Economic √√

4.1.3 Environmental/Physical √√ (6)

4.2 Macro environment can be a challenge to the business

- Businesses do not have control over macro environmental factors √ yet
they are bound to affect them. √
- The macro environment can also greatly affect consumers directly, √
affecting their ability and willingness to spend. √
- The external and uncontrollable factors influence an organisation9s
decision making √ and affect its performance and strategies. √
- The macro environment is always changing √ and businesses must
implement new strategies to keep afloat. √
- The components can increase or decrease the need √ for your product or
create entirely new needs. √
- Any other relevant answer related to why the macro environment can be
a challenge to the business.
Max. (4)

4.3 Negative impact of HIV/Aids on a business

- This disease leads to a decline in the productivity of the affected
employees. √√
- Trained and experienced workers die from the disease before they grow
old, increasing staff turnover in the business. √√
- There is a decrease in demand owing to a decrease in customers. √√
- There can be prejudice in the workplace against employees that are
affected by HIV/Aids. √√
- The pool of available skilled workers is getting smaller due to the high
rate of HIV infection. √√
- Any other relevant answer related to the negative impact of HIV/Aids on
the business. Max. (4)

4.4 Relationship between micro, market and macro environments

- Business enterprises are in constant interaction √ with elements present
in all three business environments. √
- An entrepreneur uses the factors of production √ to produce a product or
service. √
- An entrepreneur aims to satisfy the needs of the consumer √ in order to
make a profit. √
- During this process, the entrepreneur is subjected to challenges √ coming
from amongst others, competitors, as well as the government. √

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(EC/NOVEMBER 2020) BUSINESS STUDIES P1 17

- Entrepreneurs must deal with labour crises, √ demands such as BEE and
affirmative action. √
- Providing products and services is therefore not a simple process √ that
can take place in isolation. √
- It is a complicated process √ where many influences are present. √
- A business exercises control √ over most of the elements in the micro-
environments. √
- E.g. a business cannot force consumers to buy their products, √ but it can
influence consumers through competitive prices and advertising. √
- A business can neither influence/exercise control √ over the elements of
the macro-environment. √
- A business must adapt to the challenges from the macro-environment √
and formulate strategies to cope with these challenges. √
- The three business environments are interrelated. √
- Any other relevant answer related to the interrelatedness of the
environments. Max. (6)

4.5 TWO remedies of the NCA

- The Consumer Tribunal √
- National Consumer Commission √
- Consumer Court √
- Ombudsman √

NOTE: Mark only the first TWO answers. (2)

4.6 Distinguish between quality control and quality assurance

QUALITY CONTROL QUALITY ASSURANCE

- Inspection of the final product √ - Carried out during and after the
to ensure that it meets the production process √ to ensure
required standards. √ required standards have been met
at every stage of the process. √
- Includes setting targets/ - Ensure that every process is aimed
measuring performance √ and at getting the product right first
taking corrective measures. √ time √ and prevent mistakes from
happening again. √
- Any other relevant answer - Any other relevant answer related to
related to quality control. quality assurance.
Sub-max. (2) Sub-max. (2)

NOTE: 1. The answer does not have to be in tabular format.

2. The difference does not have to link but it must be clear
3. Award a maximum of TWO (2) marks if the difference is
not clear. Max. (4)

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18 BUSINESS STUDIES P1 (EC/NOVEMBER 2020)

4.7 Quality indicators for the financial function

- Ensuring a healthy cash flow by ensuring payments are made on
time. √√
- Effective management of cash-by-cash budgeting. √√
- Financial records to be kept up to date. √√
- Accountability through tight financial processes. √√
- Negotiate better interest rates in order to keep financial cost down. √√
- Draw up accurate financial statements timeously/regularly. √√
- Invest surplus funds to create sources of passive income. √√
- Ensuring a healthy cash flow through ensuring payments are made on
time. √√
- Any other relevant answer related to quality indicators in the financial
function. Max. (4)

4.8 Implication of the CPA on the marketing function

- Bundling of goods/services should benefit consumers, √ e.g. offering a
cellphone and a tablet at a special price. √
- Comply with the requirements √ regarding promotional competitions. √
- Businesses should not discriminate when marketing √ their products and
services in different areas/places. √
- Any other relevant answer related to the implications of the CPA on the
marketing function. Max. (4)

4.9 Importance of stock control

- Enables businesses to determine √ 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. √
- Any other relevant answer related to the purpose of stock control.
Max. (6)

BREAKDOWN OF MARKS
QUESTION MARKS
4.1.1 2
4.1.2 2
4.1.3 2
4.2 4
4.3 4
4.4 6
4.5 2
4.6 4
4.7 4
4.8 4
4.9 6
TOTAL 40 [40]

TOTAL SECTION B: 80

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(EC/NOVEMBER 2020) BUSINESS STUDIES P1 19

SECTION C

Mark ONE answer in this section.

QUESTION 5: BUSINESS ENVIRONMENTS (BUSINESS SECTORS AND

SOCIO-ECONOMIC ISSUES)

5.1 Introduction
- Businesses can be divided into the formal sector and the informal sector
depending on the level of compliance with government9s business laws. √
- Developing countries tend to have a larger informal sector than developed
countries. √
- Piracy is the deliberate illegal copying or reproduction of somebody9s
product without their permission. √
- Any other relevant introduction related to the business sectors and piracy.
(2 x 1) (2)
5.2 Advantages/Importance of the informal sector
- Provides jobs and income to communities thereby alleviating poverty. √√
- People working in the informal sector gain work experience to be used in the
formal sector. √√
- Encourages entrepreneurship as self-employment.
- Provides opportunity for the marginalised/disadvantaged by encouraging
street trade. √√
- Serves as buffer between employment and unemployment. √√
- Any other relevant answer related to the importance of the informal sector.
Max. (10)

5.3 Comparison of the formal sector and informal sector

FORMAL SECTOR INFORMAL SECTOR
Contribute towards the GDP of the Contribute little towards the GDP √ and
country √ because they are legally fall outside the mainstream economic
registered. √ activities. √
Made up of highly skilled, semi- Made up of a large number of poor
skilled √ and unskilled labour. √ people √ within the rural and urban
areas. √
Not easy to enter this sector √ as Easy to enter √ this sector. √
businesses have to be legally
registered. √
Small, medium √ and large size Small scale √ operations. √
operations. √
Could be capital, technological √ Labour intensive √ with adaptable
and labour intensive depending on technology. √
type of industry. √
Comply with the relevant laws √ Unregulated in a legal √ and social
such as Labour Laws and environment. √
Occupation and Health Act. √

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20 BUSINESS STUDIES P1 (EC/NOVEMBER 2020)

Pay tax. √√ Do not pay tax √ as they are not

registered. √
Any other relevant answer related Any other relevant answer related to the
to the formal sector. informal sector.
Sub-max. 8 Sub-max. 8 (16)

NOTE: • Answer does not have to be in tabular format

• Differences must be clear otherwise only award 8 marks.

5.4 Impact of piracy on the business.

- The businesses producing the original goods √ have their profits reduced if
piracy occurs. √
- Piracy also deprives the original artist √ of his/her income. √
- People who buy pirated copies √ contribute to the problem. √
- The copying of trademarks √ confuses consumers. √
- The market is flooded with copies of the article √ so the price is pushed
down. √
- Any other relevant answer related to the impact of piracy on the business.
Max. (8)

5.5 TWO solutions

- Copyright √√
o Copyright is the right given to the creator of an original work √ so that it
cannot be copied without his/her permission. √
o The owner of intellectual property has the right to produce √ and copy
the intellectual property. √
o Includes literary works/musical works/artistic works, etc. √
- Any other relevant answer related to copyright as a solution to piracy.
Heading 2
Description 4
Sub-max. 6
- Patents √√
o Exclusive right to use or sell the invention or a product made from an
invented process √ for a limited period of time. √
o If it is an invention; someone who holds a patent has the sole right to
produce √ and sell an invention. √
o A discovery/scientific method, etc. √
- Any other relevant answer related to patents as a solution to piracy.
Heading 2
Description 4
Sub-max. 6

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(EC/NOVEMBER 2020) BUSINESS STUDIES P1 21

- Trademark √√
o A unique mark that represents a business enterprise √ and which
belongs to the business enterprise. √
o Includes words/slogans/signs, etc. √
o Registration of the use of a brand name/slogan/symbol or a
combination √ to make a product or services recognisable and
known. √
- Any other relevant answer related to trademarks as a solution to piracy.
Heading 2
Description 4
Submax. 6
Max. 12
Mark only the first TWO (2) solutions to piracy.

5.6 Conclusion
- There are strict laws that protect property rights and the punishment for
transgressions is severe. √√
- It is difficult for people from the informal sector to do business with
government departments or big businesses. √√
- Any other relevant conclusion related to the informal sector and piracy.
(1 x 2) (2)
[40]

QUESTION 5: BREAKDOWN OF MARK ALLOCATION

DETAILS MAXIMUM TOTAL
Introduction 2
Importance of informal sector 10
Differences between formal and 16
informal sector Max. 32
Impact of piracy 8
TWO solutions to piracy 12
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

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22 BUSINESS STUDIES P1 (EC/NOVEMBER 2020)

QUESTION 6: BUSINESS OPERATIONS

6.1 INTRODUCTION
- The different managers in organisations operate on three different levels. √
- Quality is the level of excellence that a business achieves. √
- Quality is about knowing what to do and how to do it. √
- Quality includes learning from mistakes and continuously trying to improve
all aspects of a business. √
- Any introduction related to management tasks, quality, levels of
management. (Max. 2 x 1) (2)

6.2 Outline FOUR management tasks.

- Planning √
- Is the process in which a manager considers the future √ set
goals/objectives √ and decides how to carry out activities of the business
to achieve its goals and objectives. √
- Is part of a process that must be carried out √ in order to achieve goals. √
- Any other relevant answer related to planning as a management task.
Max. (2)

- Organising √
- Is the process of looking at what needs to be done √ and organising
resources in such a way √ that you meet your goals and objectives. √
- Is the first part of the action stage, √ where management needs to make
sure that everyone knows what, when and how they must do it. √
- Any other relevant answer related to organising as a management task.
Max. (2)

- Leading √
- To guide/motivate and inspire others √ to achieve goals. √
- To provide a clear vision/goals for the employees √ to ensure they know
what they need to achieve. √
- Any other relevant answer related to leading as a management task.
Max. (2)

- Directing √
- Directing involves guiding and influencing the activities of the business √ to
make sure that the employees are made aware √ of what is expected of
them. √
- Management has to direct the processes and procedures. √
- Ensure that the correct processes are followed √ and that the required
standards are met. √
- Any other relevant answer related to directing as a management task.
Max. (2)

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(EC/NOVEMBER 2020) BUSINESS STUDIES P1 23

- Controlling √
- Checking that activities are carried out √ according to plan. √
- This is done through careful observation √ and by asking people for
feedback. √
- Management has to put control systems in place to ensure that standards
are met. √
- Where systems are not working management needs to put mechanisms in
place to correct this situation. √
- Any other relevant answer related to controlling as a management task.
Max. (2)
- Delegating/activating √
- To start doing the work √ that will enable an enterprise to achieve its
goals. √
- Putting planning into action. √
- Activating (Motivating) involves encouraging staff √ by giving them
incentives to perform their jobs well. √
- Any other relevant answer related to delegating/activating as a
management task. Max. (2)
- Risk Management √
- Identifies possible risk by finding risk-bearing activities (i.e. activities which
could go wrong) √ within the organisation. √
- Assists businesses to analyse each possible risk, √ to assess how likely it
is that the risk will happen. √
- Any other relevant answer related to risk management as a management
task. Max. (2)
Mark first FOUR only. (8)
6.3 Responsibilities of the THREE levels of management
- Top management √√
- Make strategic decisions √ which will have long-term outcomes/
consequences. √
- Plan the future √ of the business. √
- Manage change √ in the business environment. √
- Plan the activities √ of the business. √
- Gives direction √ to the vision, mission, goals and objectives. √
- Any other relevant answer related to the duties of top-level management.
Heading 2
Description 4
Sub-max. 6
- Middle management √√
- Make medium-term √ tactical decisions. √
- Controls the people √ and processes in the business. √
- It is the link between √ top management and lower-level management. √
- Passes information from top management √ to lower management. √
- Focuses on how √ the business will carry out the strategic decisions. √
- Acquire resources √ needed in their department. √
- Any other relevant answer related to the duties of middle level
management.
Heading 2
Description 4
Sub-max. 6

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24 BUSINESS STUDIES P1 (EC/NOVEMBER 2020)

- Lower level √√
- Make short-term √ operational decisions. √
- Make routine √ activities. √
- Plan the daily √ activities √
- Set individual objectives √ for workers working under him/her. √
- Offer feedback and suggestions √ to middle management. √
- Implement the objectives √ of the middle management. √
- They motivate √ and guide workers. √
- Any other relevant answer related to the duties of lower-level
management.
Heading 2
Description 4
Sub-max. 6
Max. 18
NOTE: Mark only the FIRST THREE levels of management.
6.4 Importance of quality for the business.
- Dealers and consumers are assured √ that products are of a required
standard. √
- It encourages workers √ to continue to produce quality products. √
- Costs can be reduced √ through elimination of poor products. √
- It leads to improved quality √ and design. √
- Increased √ customer satisfaction. √
- Increased competitiveness √ as high-quality places the business products
above those of competitors. √
- Increased likelihood of achieving √ business vision and goals. √
- Any other answer related to the importance of quality for the business.
Max. (8)

6.5 The correlation between the success of the business and management.
- Management plays a key role in the success of a business enterprise by
making the correct decisions. √√
- It is management9s responsibility to determine the objectives of the
enterprise; these objectives must be realistic and attainable. √√
- The performance of the business will be measured against these
objectives, and the success of the business depends on the way that these
objectives are being accomplished. √√
- Management must also ensure that tasks are allocated to suitable
employees. √√
- The chosen organisation structure must enhance productivity and motivate
employees to do their best. √√
- If employees are able to achieve the business objectives on a daily basis,
the business will also be successful in the long term. √√
- It is the responsibility of management to create an atmosphere which will
ensure good employer-employee relationships and high levels of
productivity. √√
- Problems that are not solved can lead to a decrease in productivity and a
loss in sales. √√

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(EC/NOVEMBER 2020) BUSINESS STUDIES P1 25

- The managers of a business carry a large and heavy responsibility, because

the decision that a manager takes can either benefit an enterprise or sink
an enterprise. √√
- Any other relevant answer related to the correlation between the success
- of the business and management. Max. (12)

6.6 CONCLUSION
- Continuous control ensures that the business runs smoothly. √√
- In an organogram there is a specific channel of command and the line of
instruction, authority and responsibility must be clear. √√
- Top managers do more planning and lower-level managers do more
leading. √√
- Any other relevant conclusion related to the tasks of management, levels
of management, importance of quality and the correlation between the
success of the business and management. Max. (2)

QUESTION 6: BREAKDOWN OF MARK ALLOCATION

DETAILS MAXIMUM TOTAL
Introduction 2
Four management tasks 8
Responsibilities of THREE
levels of management 18
Importance of quality for
Max. 32
the business 8
Correlation between the
success of the business
and management 12
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

TOTAL SECTION C: 40
GRAND TOTAL: 150

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