GRADE 11

BUSINESS STUDIES
JUNE 2023

PAPER 2 TEST

MARKS: 100
TIME: 1½

INSTRUCTIONS AND INFORMATION

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Read the following instructions carefully before answering the questions.

1. This paper consists of THREE sections and covers FIVE main topics.
SECTION A: COMPULSORY
SECTION B: Consists of THREE questions.
Answer any TWO of the three questions in this section.
SECTION C: Consists of TWO questions.
Answer any ONE of two questions in this section.
2. Read the instructions for each question carefully and note what is required.
Note that ONLY the first TWO questions in SECTION B and the FIRST questions in
SECTION C will be marked.
3. Number the answers carefully according to the numbering system used in this paper.
No marks will be awarded for wrongly numbered answers.
4. Except where other instructions are given, answers must be written in complete
sentences.
5. Use the mark allocation and nature of each question to determine the length and
depth of an answer.
6. Use the table below as a guide for marking and time allocation when answering each
question.

SECTION A QUESTION MARKS TIME

A: SHORT QUESTIONS
1 20 15
COMPULSORY
B: THREE direct/indirect type questions 2 20 30
CHOICE: Answer any TWO 3
C: TWO essay type questions 4 40 45
CHOICE: Answer any ONE. 5 40
TOTAL 100 90 MIN

7. Start the answer to EACH question on a NEW page, e.g. QUESTION 1 – new page,
QUESTION 2 – new page.
8. You may use a non-programmable calculator.
9. Write neatly and legibly.

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SECTION A (COMPULSORY)

QUESTION 1

1.1.1 Various options are provided as possible answers for the following questions. Choose the
answer and write only the letter (A-D) next to the question numbers (1.1.1 to 1.1.5) in the
ANSWER BOOK, e.g. 1.1.6 D.

1.1.1 What is one of the main responsibilities of a lessee in a lease agreement?

A. The right to occupy an asset
B. The right to use the asset
C. The responsibility to keep the asset in good order
D. The right to own the asset

1.1.2 Which of the following is a main cause of stress in the workplace?

A. Work hours that take up family time
B. Working from home
C. Managers who are competent and efficient
D. Adequate training given to employees

1.1.3 What is the tax implication for a private company on dividends distributed to shareholders?
A No tax is paid on dividends
B Only shareholders are taxed on dividends
C The company pays primary tax on dividends, and shareholders pay secondary tax
D The company and shareholders both pay secondary tax on dividends

1.1.4 Ethical behaviour when dealing with stakeholders means …

A Following the lowest legal and moral standards
B Prioritizing stakeholder interests over personal interests
C Being flexible with legal and moral standards
D Upholding the highest legal and moral standards

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1.1.5 … is one the result of using creative thinking to solve problems.
A New ideas are not generated
B The focus is on using established methods to solve problems
C The same solutions are used as before
D Innovative ideas and different ways of doing things are explored
(5 x 2) (10)

1.2 Complete the following statements using the words in the list below. Write down only the
word(s) next to the question numbers (1.2.1 to 1.2.5) in the ANSWER BOOK.

private company; franchisor; delphi; prospectus; stress; invitation;

force-field analysis; closed corporation; primary owner; ill-health

1.2.1 The … technique will require the input of experts through the completion of questionnaires.
1.2.2 The … is a person or company that owns the business model and related trademarks that
can be used by another business owner at a monthly fee.
1.2.3 A(n) … a document inviting the public to buy securities or shares
1.2.4 A (n) new … cannot be registered anymore, only existing ones can be bought.
1.2.5 If … is not managed effectively, it can result in absenteeism.
(5 x 2) (10)

TOTAL SECTION A: 20

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SECTION B

Answer any TWO questions in this section.

NOTE: Clearly indicate the QUESTION NUMBER of each question you select. The answer to
EACH question must start on a NEW page, e.g. QUESTION 2 on a NEW page,
QUESTION 3 on a NEW page.

QUESTION 2: Benefits of a company over other forms of ownership.

2.1 Name TWO aspects that must be included in the prospectus. (2)

2.2 Read the scenario below and answer the questions that follow.

Sound Symphony Pty Ltd

Sound Symphony Pty Ltd sells a variety of musical instruments. The business has
grown significantly over the last 5 years. They would like to convert the company into a
company that can sell shares on the JSE and they will also appoint a minimum of
three directors.

2.2.1 Mention the type company that Sound Symphony Pty Ltd is currently. Motivate
your answer. (2)

2.2.2 Discuss the advantages of the company the Sound Symphony Pty Ltd
wants to convert to. (6)

2.3 Discuss the characteristics of a personal liability company. (4)

2.4 Explain the legal requirements of the name of a company. (2)

2.5 Advise businesses about the benefits of establishing a company versus other forms
of ownership. (4)

[20]

QUESTION 3:

3.1 Mention any TWO reasons why an entrepreneur would decide to buy an existing
business. (2)

3.2 Identify the business avenue in each of the following statements: (6)

3.2.1 Jaco obtained licence to use the name “Yummy Foods” who is an existing business in
their local area.

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 3.2.2 Nico hired a third-party vendor to handle their customer
service inquiries instead of having an in-house customer support team.

3.2.2 Bennie’s delicious take-away rents a delivery vehicle for a fixed period of time
and pays a monthly fee.

3.3 Advise the businesses on the impact of franchising (4)

3.4 Discuss the disadvantages of leasing (4)

3.5 Advise businesses on the contractual implications of leasing. (4)

[20]

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QUESTION 4

4.1 Give the meaning of the meaning of stress in the workplace. (2)

4.2 Read the scenario below and answer the questions that follow:

Green Leave Spa

Green Leave Spa is a local spa in Johannesburg. They provide a variety of beauty
treatments. Some of the workers are complaining that the work hours are too long
without adequate breaks. Cindy, the manager also had to address more than one case
of bullying and harassment.

4.2.1 Identify TWO causes of stress in the workplace from the given scenario. (2)

4.2.2 Mention TWO other causes of stress in the workplace. (2)

4.3 Explain the importance of stress management in the workplace. (4)

4.4 Outline strategies businesses use to deal with globalisation and affirmative action as
major changes in a business. (4)

4.5 Discuss John P Kotter’s eight steps of leading change. (6)

[20]

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SECTION C

ANSWER ONLY ONE QUESTION IN THIS SECTION

QUESTION 5

The corporate world places great importance on professionalism and ethics, which are essential
components of this environment. Being professional entails exhibiting appropriate behavior that
aligns with the requirements of one's job, demonstrating high levels of competence,
accountability, and dependability. On the other hand, ethics refer to the set of moral values and
principles that guide an individual's conduct, choices, and dealings with others.

Write an essay on professionalism and ethics in which you include the following aspects:

 Outline the different perspectives on ethics.

 Explain any three theories of ethics that is applicable to the workplace.
 Discuss differences between professionalism and ethics
 Advise businesses on ways in which professional, responsible, ethical and effective business
practice should be conducted

QUESTION 6

Creative thinking is a crucial aspect of marketing. It allows marketers to generate new,

innovative ideas that capture the attention of their target audience, differentiate their brand from
competitors, and ultimately drive business growth. With creative thinking, marketers can
develop campaigns that resonate with consumers, evoke emotions, and create a memorable
brand experience. Additionally, creative thinking enables marketers to find solutions to problems
and challenges that may arise in the marketing process. It allows for experimentation, taking
risks, and trying new approaches, which can lead to breakthrough campaigns and strategies.

Write an essay on creative thinking and problem solving in which you include the following aspects:

 Outline ways in which businesses can create an environment that stimulates creative thinking in
the workplace
 Explain the advantages of creative thinking in the workplace
 Discuss how businesses can apply the Delphi Technique
 Advise businesses on the advantages of working with others to solve problems

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