Grade 12 Ssip Material Section b Tg

Business Studies
Grade 12
Term 2
Teacher’s Guide
Page | 1
© Gauteng Department of Education

TABLE OF CONTENTS
SESSIONS TOPICS PAGES
1 Business Sectors and their environments 3-4
2 Quality performance 4-14
3 Management & leadership 15-20
4 Investments: Securities 24-30
5 Investment: Insurance 34-41
6 Team Performance & Conflict Management 41-47
Page | 2

SESSION 1
QUESTION 1
1.1 Business Environment
BUSINESS ENVIRONMENT EXTENT OF CONTROL
1.1.1 Macro √√ No control √
1.1.2 Micro √√ Full control√
1.1.3 Market √√ Limited control/less/partial/can
influence √
Sub max (6) Sub max (3)
NOTE: 1. Mark the first TWO (2) only.

2. The answer does not have to be in tabular format.
3. Award marks for the business environments even if the
extent of control is not indicated/incorrect.
4. The extent of control must be linked to the business
environment.
5. Accept responses in any order.
Max (6)
1.2 Business sectors and environments
1.2.1 Secondary sector√√ (2)
Motivation
Mkhize Bakeries is an expert in producing a variety of cakes√ (1)
NOTE: Do not award marks for the motivation if the method of

recruitment was incorrectly identified.
Max (3)
1.2.2 Business environments and extent of control
CHALLENGES BUSINESS EXTENT OF CONTROL
(1.2.2) ENVIRONMENTS (1.2.4)
(1.2.3)
1 MB buys raw material from Market √ Limited
Mercia Wholesalers who control/less/partial/can
sometimes sell poor quality influence √
material√
2 MB is spending more money Macro √ Full control√
on tax as the government has
increased tax rate for
businesses√
3 Mkhize Bakeries is Micro √ No control √
experiencing a decline in profit
due to employees go slows. √
Max (3) Max (3) Max (3)
Page | 3

NOTE: 1. Mark the first challenge for each environment only.
2. If the business environment is not linked to the challenge,
mark the challenge only.
3. Award full marks for the business environment even if the
challenge is not quoted in full.
4. The extent of control must be linked to the business
environment.
5. Do not award marks for the extent of control if the business
environment is not mentioned.
Max (9)
QUESTION 2
SESSION 2: QUALITY OF PERFORMANCE
QUESTION 1
1.1 Multiple choice question
1.1.1 B√√
1.1.2 A√√
1.1.3 C√√
1.1.4 D√√
1.1.5 B√√
1.1.6 C√√
(6X2) (12)
QUESTION 2
2.1 Business functions
2.1.1 Business functions from the scenario
BUSINESS FUNCTIONS MOTIVATIONS
1 Marketing function √√ Mohamad Trading differentiates its products to
attract more customers. √
2 Administration function√√ MT ensures that documentation is kept neatly
and orderly in a safe place. √

2. Do not award marks for the motivation if the forces were
incorrectly identified.
3. Award marks for the business functions even if the quote is
incomplete.
Max (6)
Page | 4

2.1.2 Quality indicators of the marketing function and administration
function
Marketing function
• Increasing their √ market share. √

• Winning customers by √ satisfying their needs/wants/Building positive
relationships. √
• Adhering to ethical advertising practices√ when promoting products/services.
√
• Identifying a competitive advantage√ to focus/improve on marketing
strengths. √
• Constantly reviewing√ value issues. √
• Communicating effectively with customers to get feedback √about their
experience of products sold/services rendered. √
• Co-ordinating distribution√ with production and advertising strategies. √
• Using pricing techniques√ to ensure a competitive advantage. √
• Determine gaps between customer expectations √ and actual experiences,
so that problems/unhappiness may be diagnosed and addressed. √
• Making adjustments/changes to products/services √based on feedback from
customers/results of market research. √
• Using aggressive advertising campaigns √to sustain/increase the market
share. √
• Any other relevant answer related to other quality indicators of the marketing
function.
Sub max (6)
Administration function
• Fast and reliable data capturing√ and processing systems. √

• Make reliable information available√ to management on time. √
• Make relevant information available√ for quick decision-making. √
• Handle complaints quickly√ and effectively. √
• Use modern technology√ efficiently√
• Implement effective risk management policies to minimise business losses. √
• Quality assurance/Control/Evaluation√ is recorded accurately√
• Easy to recall/find information/documentation. √
• Financial documents are kept up to date √and recorded accurately. √
• All systems and processes√ are documented. √√
• Any other relevant answer related to other quality indicators of the
administration function.
Sub max (6)
NOTE: Do not allocate marks for responses that were quoted in QUESTION 2.
Max (12)
Page | 5

2.2 Distinction between quality management and quality performance
QUALITY MANAGEMENT QUALITY PERFORMANCE

• Techniques/tools used to design/ • Total performance of each department
improve√ the quality of a product√ measured√ against the specified
standards√
• Can be used for accountability√ • Can be obtained if all departments work
within each of the business together√ towards the same quality
functions√ standards√
• Aims to ensure that the quality of • Quality is measured through physical
goods/ services consistent/ product/ statistical output of processes/
focuses√ on the means to achieve surveys√ of the users and/ or buyers of
consistency√ goods/ services√
• Any other relevant answer related • Any other relevant answer related to
to quality management quality performance
NOTE: 1. The answer does not have to be in tabular format.

2. The distinction does not have to link but must be clear.
3. Award a maximum of FOUR (4) marks if the distinction is not
clear/Mark either quality management or quality performance
only.
Max (8)
2.3 Benefits of good quality management system

2.3.1 Benefits of good quality management system from the scenario
• Natto Production ensures that productivity increases through proper time
management. √
• NT has a competitive advantage over its competitors. √

2. Only award marks for responses that are quoted from the
scenario.
(2 x 1) (2)
2.3.2 Other benefits of good quality management system

• Effective customer services are rendered√, resulting in increased customer
satisfaction. √
• Time and resources√ are used efficiently√
• Products/Services are constantly improved resulting√ in increased levels of
customer satisfaction. √
• Vision/Mission/Business goals√ may be achieved. √
• Employers and employees will have a healthy working√ relationship resulting
in happy/productive workers. √
• Increased market share/more√ customers improve profitability. √
• Regular training will continuously improve√ the quality of employees' skills/
knowledge. √
Page | 6

• Improves business image√ as there are less defects/returns. √
• Any other relevant answer related to other benefits of good quality
management system.
NOTE: Only award marks for responses that are quoted from the
scenario.
Max (8)
2.4 Contribution of the production function and human resources

function to the success of the business
2.4.1 Production function

• Provide high quality services/products according to specifications. √√
• The production/operating processes of a business should be done correctly
through proper production planning and control. √√
• Products and services should be produced at the lowest possible cost to allow
for profit maximisation. √√
• Businesses should clearly communicate the roles and responsibilities to the
production workforce. √√
• Products must meet customers' requirements by being safe, reliable and
durable. √√
• Businesses should have good after-sales services and warrantees. √√
• Empower workers so that they can take pride in their workmanship. √√
• Get accreditation from the SABS/ISO 9001 to ensure that quality products are
being produced.
Specify the product or service standards and take note of the factors that consumers
use to judge quality. √√
• Monitor processes and find the root causes of production problems. √√
• Implement quality control systems to ensure that quality building products are
consistently being produced. √√
• Utilise machines and equipment optimally. √√
• Accurately calculate the production costs. √√
• Select the appropriate production system such as mass/batch/jobbing. √√
• Any other relevant answer related to how the production function can
contribute to the success of the business
Submax (6)
2.4.2 Human resources function

• Makes sure there is a good recruitment policy that attracts best candidates. √√
• Ensures fair and equitable selection process. √√
• Fair remuneration packages that is aligned to the industry. √√
• Offer performance incentives for staff to enhance productivity. √√
• Good relationship with employees. √√
• Low rate of staff turnover in the business√√
Page | 7

• Any other relevant answer related to human resource contributing to the
success of the business
Submax (6)
Max (8)
QUESTION 3
3.1 Meaning of total quality management /TQM

• TQM is an integrated system/methodology applied throughout the organisation
which helps to√ design/produce/provide quality products/services to
customers. √
• A thought revolution in management√, where the entire business is operated
with customer orientation in all business activities. √
• Enables businesses to continuously improve on the delivery of products/
services√ in order to satisfy the needs of customers. √
• Management ensures that each employee is responsible√ for the quality of
his/her work/actions. √
• Focuses on achieving customer satisfaction √and looks for continuous
improvement in all the business’s processes, products and services. √
• Takes steps to ensure the full involvement√ and co-operation of all employees
in improving quality.
• Any other relevant answers related to the meaning of total quality
management.
Max (4)
3.2 Advantages of continuous skills development

• Large businesses have a human resources department dedicated to skills
training and development. √√
• Human resources experts ensure that training programmes are relevant to
increase customer satisfaction. √√
• Ability to afford specialised/skilled employees. √√
• Large businesses conduct skills audits to establish the competency/education
levels of staff which may positively affect the quality of products. √√
• May be able to hire qualified trainers to train employees on a regular basis. √√
• Any other relevant answer related to the advantages of continuous skills
development/education and training as a TQM element on large businesses.
Max (6)
3.3 TQM elements
3.3.1 TQM elements from the scenario
TQM ELEMENTS MOTIVATIONS
1 Adequate financing and capacity TCM has sufficient capital to test
√√ everything before implementing√
2 Continuous improvements to They can afford to use the services of
processes and systems√√ the quality circles to stay ahead of
their competitors. √
Page | 8

NOTE:.1. Mark the first TWO (2) only.
2. Do not award marks for the motivation if the TQM elements
were incorrectly identified.
3. Award marks for the TQM elements even if the quote is
incomplete. Max (6)
3.3.2 Impact of adequate financing and capacity and continuous

improvement to processes and systems
Impact of adequate financing and capacity on large businesses

Positives/ Advantages
• Large businesses have sufficient financing to test everything before

implementing. √√
• They can afford to have systems in place to prevent errors in
processes/defects in raw materials/products. √√
• Able to afford product research/market researchers to gather information. √√
• Can afford to purchase quality raw materials and equipment. √√
• Any other relevant answer related to the positive impact/advantages of
adequate financing and capacity
AND/OR
Negatives/ Disadvantages
• If the demand for company’s product increases, orders begin coming in faster
than expected, and the company lacks the capital required to fund the
production of the stock to fill the orders. √√
• These rapidly growing companies can consume large amounts of capital as
they try to balance normal operations and expansion. √√
• Any other relevant answer related to the negative impact/disadvantages of
adequate financing and capacity.
Max (6)
OR
Impact of continuous improvement to processes and systems

Positives/Advantages
• Large businesses have more resources√ to check on quality performance in
each
unit. √
• Enough capital resources are available √ for new equipment required for
processes and systems. √
• Large businesses have a person dedicated √to the improvement of processes
and systems. √
• Willing to take risk on/try new processes and systems√ because they are able
to absorb the impact of losing money. √
• They can afford to use the services of the quality circles√ to stay ahead of their
competitors. √
Page | 9

• Any other relevant answer related to the positive impact/advantages of
continuous improvement to processes and systems
AND/OR
• Large scale manufacturing can complicate√ quality control. √
• Systems and processes take time/effort to implement in large businesses √ as
communication/buy-in may delay the process. √
• Risk of changing parts of the business √ that are actually working well. √
• Not all negative feedback from employees and customers is going to be
accurate√, which may result in incorrect/unnecessary changes to systems and
processes. √
continuous improvement to processes and systems
Max (6)
3.4 Application of the PDCA model/ steps to improve the quality of products
Plan√
o The business should identify the problem. √
o Develop a plan for improvement to processes and systems√.
o Answer questions such as 'what to do' and 'how to do it'. √
o Plan the method and approach. √
o Any other relevant answer related to Plan as a PDCA model
Sub max (2)
Do√
o The business should implement the change on a small scale. √
o Implement the processes and systems√
o Any other relevant answer related to Do as a PDCA model.
Sub max (2)
Check/Analyse√
o Use data to analyse the results of change. √
o Determine whether it made a difference. √
o Check whether the processes are working effectively. √
o The business should assess, plan and establish if it is working/if things are
going according to plan. √
o Any other relevant answer related to Check as a PDCA model.
Sub max (2)
Act as needed √
o Institutionalise the improvement. √
o Devise strategies on how to continually improve. √
o If the change was successful, implement it on a wider scale√.
o Continuously revise the process. √
o Any other relevant answer related to Check as a PDCA model.
Sub max (2)
2. Accept the steps in any order.
Max (8)
Page | 10

3.5 Impact of total quality management/TQM if poorly implemented
• Setting unrealistic deadlines that may not be achieved. √√
• Employees may not be adequately trained resulting in poor quality products.
√√
• Decline in productivity, because of stoppages. √√
• Businesses may not be able to make necessary changes to products/services
to satisfy the needs of customers. √√
• Businesses' reputation/image may suffer because of poor quality/defective
goods. √√
• Customers will have many alternatives to choose from and the impact could be
devastating to businesses. √√
• Investors might withdraw investment, if there is a decline in profits. √√
• Decline in sales as more goods are returned by unhappy customers. √√
• High staff turnover, because of poor skills development. √√
• Undocumented/Uncontrolled quality control processes/systems could result in
errors/deviations from pre-set quality standards. √√
• Any other relevant answer related to the impact of TQM if poorly implemented
by businesses.
Max (6)
QUESTION 4
4.1 Introduction
• Quality control plays an important role in the entire production process as it
determines the results of the end product. √
• Quality assurance enables businesses to identify and correct product defects
during the initial stage of production. √
• The implementation of the TQM elements can reduce the cost of quality. √
• Monitoring and evaluating quality processes enables businesses to track
progress and take corrective action. √
• Businesses should continuously analyse customers' needs and develop turn
around strategies to satisfy their customers. √
• Quality circles offer good recommendations as they consist of specialists from
different departments. √
• Any other relevant introduction related to quality control/quality assurance/
ways in which TQM can reduce the cost of quality/impact of Monitoring and
evaluating quality processes/total client satisfaction/role of quality circles.
Any (2 x 1) (2)
Page | 11

4.2 Differences between quality control and quality assurance
QUALITY CONTROL QUALITY ASSURANCE
- System that ensures the desired - Checks carried out during and after
quality is met by inspecting the the production process. √√
final product. √√
- Ensure that finished products - Ensure that required standards have
meet the required standards. √√ been met at every stage of the
process. √√
- Process of ensuring that products - Processes put in place to ensure that
are consistently manufactured to the quality of products/services/
high standards. √√ systems adhere to pre-set standards
with minimal
defects/delays/shortcomings. √√
- Checking raw - Ensuring that every process is aimed
materials/employees/ to get the product 'right the first time'
machinery/workmanship/products and prevent mistakes from
to ensure that high standards are happening. √√
maintained. √√
- Includes setting targets/measuring - The 'building in' of quality as opposed
performance and taking corrective to 'checking of' quality. √√
measures. √√
- Any other relevant answer related - Any other relevant answer related to
to quality control. quality assurance.
Submax (4) Submax (4)

2. The differences do not have to link, but must be clear.
3. Award a maximum of SIX (6) marks if the differences are not
clear/Mark either quality control or quality assurance only.
Max (8)
4.3 Ways in which TQM can reduce the cost of quality

• Introduce quality circles√ to discuss ways of improving the quality of their
work/workmanship. √
• Schedule activities√ to eliminate duplication of tasks. √
• Share responsibility for quality output√ amongst management and workers. √
• Train employees at all levels√, so that everyone understands their roles in
quality management. √
• Develop work systems that empower employees√ to find new ways of
improving quality. √
• Work closely with suppliers √to improve the quality of raw materials/inputs. √
• Improve communication about the quality challenges/deviations√, so that
everyone can learn from past experiences. √
• Reduce investment on expensive√, but ineffective inspection procedures in
the production process. √
• Implement pro-active maintenance programmes√ for equipment/machinery to
reduce/eliminate breakdowns. √
Page | 12

• Any other relevant answer related to ways in which TQM can reduce the cost
of quality.
Max (10)
4.4. Impact of monitoring and evaluating quality processes and total

client/customer satisfaction
4.4.1 Impact of monitoring and evaluating quality processes

Positives/advantages
• Prevents product defects √ and minimises wastage/customer complaints. √
• Good quality checks/procedures minimises √ the replacement/breakdown of
equipment/machinery on a regular basis. √
• May be equipped to get things done√ right the first time. √
• Improve performance √ and maintain high quality standards. √
• Improve current and future management√ of quality outputs/outcomes/impact.
√
• Provide clear indication about quality aspects√ that are contributing to the
achievement of goals/targets. √
• Modify interventions that may improve √ the efficient use of resources. √
• Support management to acquire information needed √ to make informed
decision about processes. √
• Cost of production is reduced √ as deviations from set standards can be
corrected. √
• Strategies are revised in order to improve the quality of the product√ and
services/business image. √
• Allows for quality control checks√ and procedures at key points. √
• Key performance indicators are carefully selected √ to monitor and evaluate
the outcome. √
• Benchmarking is used to find best practices√ in order to determine the
competitive position of the business. √
• Quality circles meet on regular basis√ to evaluate the progress in terms of
quality. √
• Continuous research is conducted on latest developments √ to ensure that
TQM planning is up to date. √
• Any other relevant answer related to the positive impact/advantages
monitoring and evaluating quality processes as a TQM element on large
businesses.
AND/OR
• Large businesses are often divided√ and the departments work in silos. It is
difficult to get everyone to communicate. √
• It often takes longer to detect√ problems/respond to weaknesses√
• It is not viable to check quality √of all the products√
monitoring and evaluating quality processes as a TQM element on large
businesses
Submax (8)
Page | 13

4.4.2 Impact of total client/customer satisfaction
• Large businesses use market research/customer surveys√ to measure/
monitor customer satisfaction/analyse customers' needs.√
• Continuously promote√ a positive company image.√
• May achieve a state of total client/customer satisfaction√, if businesses follow
sound business practices that incorporate all stakeholders.√
• Strive to understand and fulfil customer expectations√ by aligning cross-
functional teams across critical processes.√
• Ensures that cross-functional teams understand their core competencies√ and
develop/strengthen it.√
• May lead to higher customer retention/loyalty√ and businesses may be able to
charge higher prices.√
• Large businesses may be able to gain access√ to the global market.√
• May lead to increased √ competitiveness/profitability.√
• Any other relevant answer related to the positive impact/advantages of total
client/customer satisfaction as a TQM element on large businesses.
AND/OR
Negatives/Disadvantages
• Employees who seldom come into contact with customers√ often do not have
a clear idea of what will satisfy their needs. √
• Monopolistic companies have an increased bargaining power√ so they do not
necessarily have to please customers. √
• Not all employees may be involved /committed√ to total client/customer
satisfaction. √
total client/customer satisfaction as a TQM element on large businesses.
Submax (8)
Max (16)
4.5 Role of quality circles as part of continuous improvement to processes

and systems
• Solve problems related to quality and implement improvements. √√

• Investigate problems and suggest solutions to management. √√
• Ensure that there is no duplication of activities/tasks in the workplace. √√
• Make suggestions for improving processes and systems in the workplace. √√
• Improve the quality of products/services/productivity through regular reviews
of quality processes. √√
• Monitor/Reinforce strategies to improve the smooth running of business
operations. √√
• Increase employees' morale and motivation. √√
• Discuss ways of improving the quality of work/workmanship. √√
• Contribute towards the improvement and development of the organisation. √√
• Reduce costs of redundancy and wasteful efforts in the long run. √√
• Increase the demand for products/services of the business. √√
• Create harmony and high performance in the workplace. √√
Page | 14

• Build a healthy workplace relationship between the employer and employee.
√√
• Improve employees' loyalty/commitment to the organisational goals. √√
• Improve employees' communication at all levels of the business. √√
• Develop a positive attitude/sense of involvement in decision making
processes of the services offered. √√
• Any other relevant answer related to the role of quality circles as part of
continuous improvement to processes and systems.
Max (12)
4.6 Conclusion
• Quality control enables businesses to avoid fruitless expenditure due to low
sales resulting from poor products. √√
• Quality assurance minimises the number of products that customers will
return for a replacement item or to get a refund. √√
• Businesses should always review the implementation of quality control and
quality assurance to reduce the cost of quality. √√
• The correct implementation of monitoring and evaluating quality processes
may enable employees to work effectively and meet targets. √√
• Total client/customer satisfaction helps businesses to effectively implement
total quality and ensure they meet all requirements of its customers. √√
• Quality circles enable businesses to put operational systems and guidelines in
place aimed at achieving high customer satisfaction. √√
• Any other relevant conclusion related to quality control/quality assurance/ ways
in which TQM can reduce the cost of quality/impact of Monitoring and
evaluating quality processes/total client satisfaction/role of quality circles
(1 x 2) (2)
[40]
SESSION 3: MANAGEMENT AND LEADERSHIP
QUESTION 1
1.1 Differences between leadership and management
MANAGEMENT LEADERSHIP
- Guides human behaviour. √√ - Influences human behaviour. √√
- Communicates through management - Communicates by means of
functions such as the line function. √√ interaction/behaviour/vision/values/
charisma. √√
- Administers plans/programs/tasks to - Innovates/Encourages new ideas to
reach targets. √√ increase productivity. √√
- Controls systems and procedures to - Inspires staff to trust and support each
get the job done. √√ other. √√
- Focuses on how and when. √√ - Focuses on what and why. √√
- Focuses on the short/medium term. √√ - Focuses on the horizon/long term. √√
Page | 15

- A person becomes a manager because - Leaders are born with natural/instinctive
of the position in which he/she is leadership skills. √√
appointed. √√
- Manages the process of getting things - Guides/Leads people to become active
done by exercising responsibility. √√ participants. √√
- Managers have power because of the - Leaders have influence because of his/her
position of authority into which they are knowledge/skills/ intelligence. √√
appointed. √√
- Enforce rules on subordinates - Always trying to find more efficient ways
√√/Ensure that tasks are completed. √√ of completing tasks. √√
- Instructional in their approach. √√ - Motivational/Inspirational in their
approach √√
- Task-orientated. √√ - People-orientated. √√
- Manage by planning/organising/ - Lead by example/trust/respect. √√
leading/controlling. √√
- Does things right. √√ - Does the right things. √√
- Any other relevant answer related to - Any other relevant answer related to
management. leadership.
NOTE: 1.
The answer does not have to be in tabular format.
2.
The differences do not have to link, but must be clear.
3.
Award a maximum of FOUR (4) marks if the differences are not
clear/Mark either management or leadership only.
Max (8)
1.2 Leadership styles
1.2.1 Leadership styles from the scenario
LEADERSHIP STYLES MOTIVATIONS

1 Laissez-faire/ Free reign√√Mpumi delegates tasks to employees who have
expert knowledge of various clothing and
furniture designs. √
2. Transactional√√ He ensures that disciplinary action procedures
are communicated to all employees. √

2. Award marks for leadership styles even if the quotes are
incomplete.
3. Do not award marks for the motivations if the leadership styles
were incorrectly identified.
Max (6)
Page | 16

1.2.2 Situations in which the laissez-faire/free-reign leadership style and
transactional leadership can be applied
Situations in which the laissez-faire/free-reign leadership style can be

applied
Laissez-faire/free-reign can be used when:

• Subordinates are experts and know what they want/can take responsibility for
their actions. √√
• The leader is very busy and delegation of tasks will increase productivity. √√
• Team members need to improve/develop leadership skills. √√
• Employees are highly experienced and know more about the task than the
leader. √√
• Any other relevant answer related to situations in which the laissez-faire/free-
reign leadership style can be applied in the workplace.
Submax (6)
Situations in which the transactional leadership style can be applied

Transactional leadership style can be applied when:
• The business wants to maximise employee performance. √√
• Deadlines have to be met on short notice/under pressure. √√
• Workers have a low morale. √√
• The strategies/business structures are clear and do not have to change. √√
• Productivity levels are very low/not according to targets. √√
• Any other relevant answer related to situations in which the transactional
leadership style can be applied in the workplace.
Submax (6)
Max (12)
1.3 Differences between the democratic and autocratic leadership styles

DEMOCRATIC AUTOCRATIC
• The leader involves employees√ in the • A leader takes all decisions alone√
decision-making process. √ without involving employees. √
• Clear/Two-way communication • Line of command/communication is
ensures√ group commitment to final clear√ as it is top-down/followers know
decision(s). √ exactly what to do. √
• People-oriented√, as employee's • Task-orientated √ as the opinions of
feelings and opinions are considered. employees are not considered. √
√
• Workers feel empowered √ as they are • New employees feel confident/safe√ as
involved in the decision-making strong leadership is provided. √
process. √
• Useful when the leader depends on the • Useful in a crisis/urgent situation√, e.g.,
inputs√ of experienced followers. √ after an accident/meeting tight deadline.
√
Page | 17

3. Award a maximum of FOUR (4) marks if the differences are not
clear/Mark either democratic or autocratic leadership style only.
• Handles conflict situations by involving • Handles conflict situations√ by telling
followers √ in finding the best solution. followers what they should do. √
√
Max (8)
QUESTION 2
2.1 Leadership style
2.1.1 Leadership style from the scenario
Autocratic leadership style √√

(2)
Motivation
Shaun does not allow his employees to participate in decision making. √
(1)
NOTE: Only award marks for responses that are quoted from the scenario
Max (3)
2.1.2 Impact of the autocratic leadership style
• Quick decisions can be taken√ without consulting/considering followers/
• employees. √
• Work gets done in time/on schedule√ as targets are clearly specified. √
• Line of command/communication is clear √ as it is top-down/followers know
exactly what to do. √
• Direct supervision/strict control √ ensure high quality products/service. √
• Provides strong leadership which makes new employees√ feel confident/safe.
√
• Works well in large companies where consultation√ with every employee is
impractical. √
• Clear guidance can be given√ to low-skilled/inexperienced/new staff. √
• Any other relevant answer related to the positive impact/advantages of the
autocratic leadership style on businesses.
AND/OR
• Leaders and followers may become divided √ and may not agree on ways to
solve problems. √
Page | 18

•Workers can become demotivated √ if their opinions/ideas are not considered.
√
• Demotivated workers √ impact negatively on productivity. √
• New/Creative/Cost reducing ideas √ may not be
used/considered/implemented. √
• Followers may feel that they are not valued √ resulting in high absenteeism/
employee turnover. √
• Experienced/Highly skilled workers will resist an autocratic leadership style √
as it results in slow growth/low participation/less creativity. √
• Any other relevant answer related to the negative impact/disadvantages of the
autocratic leadership style on businesses.
Max (8)
QUESTION 3
3.1 Introduction
• Leaders develop a vision to set direction for the business. √
• Managers are analytical thinkers as they make different types of decisions. √
• The transformational leadership theory allows for change to be implemented
successfully in the workplace. √
• The situational leadership theory enables leaders to acquire skills and
experience on various leadership styles. √
• The democratic leadership style enables employees to suggest divergent
ideas that can be used to make better decisions. √
• Leader applying the democratic leadership style benefit from competent and
knowledgeable employees. √
• Leaders with a positive attitude inspire their followers to work hard and
achieve set targets. √
• Any other relevant introduction related leadership and management/leadership
/management/transformational situational leadership theories/democratic
leadership style/role of personal attitude in successful leadership.
Any (2 x 1) (2)
3.2 Meaning of management and leadership

3.2.1 Meaning of management
• The coordination of planning/organising/leading/controlling √ employees to
achieve goals. √
• A person becomes a manager √because of the position in which he/she is
appointed. √
• Managers have power because of the position of authority√ into which they
are appointed. √
• Communicates through management functions √ such as the line function. √
• Administers plans/programs/tasks √ to reach targets. √
• Controls systems√ and procedures to get the job done. √
• Focuses on how/when√ as well as short/medium term. √
• Manages the process of getting things done√ by exercising responsibility. √
• Enforce rules on subordinates√ and ensures that tasks are completed. √
• Instructional in their√ approach. √
• Task-orientated √ and does things right. √
Page | 19

• Any other relevant answer related to the meaning of management.
Submax (6)
3.2.2 Meaning of leadership

• The ability of an individual or a group of individuals to influence√ and guide
followers or other members of an organisation. √
• Leaders have influence√ because of his/her knowledge/skills/ intelligence. √
• Leadership is an of inspiring subordinates√ to perform in order to achieve
goals. √
• Inspires staff to trust√ and support each other. √
• Guides/Leads people√ to become active participants. √
• It cannot be taught√, although it may be learned as it is an inborn trait. √
• Involves establishing a clear vision √and sharing it with others so that they
can willingly follow. √
• A leader steps up in times of crisis√ and is able to think and act creatively in
difficult situations. √
• Communicates by means of√ interaction/behaviour/vision/values/charisma. √
• Innovates/Encourages new ideas √ to increase productivity. √
• Focuses on what /why √ and on the horizon/long term. √
• Always trying to find more efficient ways √ of completing tasks. √
• Motivational/Inspirational in their approach √ and people-orientated √
• Lead by example/trust/respect √ and does the right things. √
• Any other relevant answer related to the meaning of leadership.
Submax (6)
Max (12)
3.3 Transformational and situational leadership theories
3.3.1 Transformational leadership theory

• Suitable for a dynamic environment √, where change could be drastic. √
• The passion/vision/personality of leaders inspire followers √ to change their
expectations/perceptions/motivation to work towards a common goal. √
• Strategic thinking leaders develop a long-term vision for the organisation √
and sell it to subordinates/employees. √
• Leaders have the trust/respect/admiration √ of their followers/subordinates. √
• Promotes intellectual stimulation/creative thinking/problem solving √ which
result in the growth/development/success of the business. √
• Followers are coached/led/mentored/emotionally √ supported through
transformation/change so that they can share their ideas freely. √
• Encourages followers √ to explore/try new things/opportunities. √
• Leaders lead by example √ and make workers interested in their work. √
• Leaders have strong, charismatic personalities √ and are very good at
motivating staff to achieve results. √
• Enable employees to take greater ownership for their work √ and to know their
strengths and weaknesses. √
• Any other relevant answer related to the transformational leadership theory.
Submax (6)
Page | 20

3.3.2 Situational leadership theory
• Different leadership characteristics√ are needed for different situations.√
• The task/situation dictates the leadership style that should be applied√, so
leaders are adaptable/flexible/self-assured.√
• Effective application of this theory may enable leaders√ to accomplish their
goals.√
• Relationships between leaders and employees√ are based on mutual trust/
respect/loyalty/integrity/honesty.√
• Leaders have the ability to analyse the situation√ and get the most suitable
people in the right positions to complete tasks successfully.√
• Leaders analyse group members/objectives/time constraints√, then adopt a
suitable/relevant leadership style.√
• May lead to conflict when leaders use different leadership styles√ when
managing employees in different situations.√
• The success of this theory depends on the kind of relationship√ that exists
between the leader and followers/subordinates/employees.√
• Any other relevant answer related to the situational leadership theory.
Submax (6)
Max (12)
3.4 Impact of the democratic leadership style
• Employees participate in the decision-making process√, so they feel
empowered/positive.
• Staff gives a variety of ideas/inputs/feedback/viewpoints√ that can lead to
innovation/improved production methods/increased sales. √
• Clear/Two-way communication ensures group commitment √ to final
decision(s).√
• Authority is delegated √which can motivate/inspire workers to be more
productive. √
• Complex decisions can be made with inputs√ from specialists/skilled workers.
√
• Any other relevant answer related to the positive impact/advantages of the
democratic leadership style.
AND/OR
• Incorrect decisions may be made √ if staff is inexperienced/not fully informed.
√
• Decision making may be time consuming√ because stakeholders have to be
consulted. √
• Employees may feel discouraged √ if their opinions/inputs are not considered.
√
• The leader can rely too much on the input of the followers√ and fail to make a
final decision. √
• Not effective in times of crisis/when quick decisions√ need to be made. √
• Some employees only pretend to participate in decision making√ and their
feedback may not always be accurate. √
Page | 21

• Any other relevant answer related to the negative impact/disadvantages of the
democratic leadership style.
Max (10)
3.5 Role of personal attitude in successful leadership

• Positive attitude releases leadership potential for personal growth. √√
• A leader's good attitude can influence the success of the business. √√
• Leaders must know their strengths and weaknesses to apply their leadership
styles effectively. √√
• Great leaders understand that the right attitude will set the right atmosphere.
√√
• Leaders' attitude may influence employees'/teams' thoughts/behaviour. √√
• Leaders should model the behaviour that they want to see in team
• members. √√
• Successful leaders consider the abilities/skills of team members to allocate
tasks/roles effectively. √√
• Enthusiasm produces confidence in a leader and inspires them to work even
harder. √√
• A positive attitude is critical for good leadership because good leaders will
stay with the task regardless of difficulties/challenges. √√
• Successful leaders and employees have a constant desire to work and
achieve personal/professional success. √√
• Leaders with a positive attitude know that there is always more to learn/space
to grow. √√
• Any other relevant answer related to the role of personal attitude in successful
leadership.
Max (12)
3.6 Conclusion
• Competent managers are able to see beyond the current situation and plan
ahead of time. √√
• The transformational leadership theory provides guidelines on how change
should be handled in the workplace. √√
• The situational leadership theory fosters good teamwork and collaboration in
the workplace
• The democratic leadership style is beneficial to both leaders and followers as
they learn from one another. √√
• Leaders with a positive attitude may experience less staff turnover as
employees may be happy in the workplace. √√
• Any other relevant conclusion related leadership and management/leadership
/management/transformational situational leadership theories/democratic
leadership style/role of personal attitude in successful leadership.
(1 x 2) (2)
[40]
Page | 22

SESSION 4: INVESTMENT: SECURITIES
QUESTION 1
1.1.1 D √√
1.1.2 A√√
1.1.3 C√√
1.1.4 B√√ (2X4) 8
QUESTION 2
2.1 Investment decision factors

• Return on investment (ROI) √
• Risk √
• Investment term/period/ √
• Inflation rate √
• Taxation √
• Liquidity √
NOTE: Mark the first THREE (3) only.
(4 x 1) (4)
2.2 Functions of the Johannesburg Securities Exchange/JSE

• Gives opportunities to financial institutions such as insurance companies
investing their surplus funds in shares. √√
• Serves as a barometer/indicator of economic conditions in South Africa. √√
• Keeps investors informed by publishing share prices daily. √√
• Acts as a link between investors and public companies. √√
• Shares are valued and assessed by experts. √√
• Small investors are invited to take part in the economy of the country through
the buying/selling of shares. √√
• Venture capital market is made possible on the open market. √√
• Strict investment rules ensure a disciplined/orderly market for securities. √√
• Raises primary capital by encouraging new investments in listed companies.
√√
• Mobilises the funds of insurance companies and other institutions. √√
• Regulates the market for trading in shares. √√
• Plans, researches and advises on investment possibilities. √√
• Ensures that the market operates in a transparent manner. √√
• Provides protection for investors through strict rules/legislation. √√
• Encourages short-term investment. √√
• Enhances job creation and increases economic growth/development. √√
• Facilitates electronic trading of shares/STRATE. √√
• Any other relevant answer related to the functions of the Johannesburg
Securities Exchange/JSE.
Max (8)
Page | 23

2.3 Investment securities
2.3.1 Investment opportunity from the scenario
Managed portfolio√√ (2)
Motivation
She instructed her financial advisor to manage her various investments in one
basket. √
(1)
Do not award marks for the motivation if managed portfolio was
incorrectly identified.
Max (3)
2.3.2 Managed portfolio risk factors

• Risk is lower √ over a longer term/period. √
• Investments are made in various sectors/companies√, therefore the risk is
spread and better managed by the portfolio manager. √
• Money is usually invested in the capital market√ and unforeseen
circumstances may impact negatively on the value of the portfolio on the short
term/High risk over the short term. √
• Any other relevant answer related to the risk factors of the management
portfolio
Max (4)
2.3.3 Other investment opportunities
Mutual funds/Stokvels√√
• It is an informal savings scheme to which a relatively small group of people
contribute. √
• Each member takes a turn to draw from the scheme/fund/stokvels for their
own personal gain. √
• No/Small return on investment, as contributions are distributed monthly to one
of the members. √
• Encourages people to save each month for a specific reason. √
• Banking fees are shared by the members, resulting in low cost of investment
per member. √
• In times when it is hard to get bank loans, stokvel pay-outs may come in
handy. √
• Usually managed by a trustworthy chairman/treasurer, who will be responsible
for keeping records and managing the bank account. √
• Members usually discuss how the money will be invested and agree on the
risks they are willing to take. √
• Any other relevant answer related to mutual funds stokvels as an investment
opportunity.
Heading: (2)
Discussion: (1)
Submax (3)
Page | 24

32-day notice accounts/Call Deposits √√
• Money is invested at a fixed rate, although withdrawals may be made
provided the bank is given 32 days' notice of the withdrawal. √
• It earns more interest than a current/cheque/savings account, but less interest
than a fixed deposit. √
• Any other relevant answer related to 32-day notice accounts/Call Deposits as
an investment opportunity.
Heading: (2)
Discussion: (1)
Submax (3)
Debentures√√
• It is issued to raise borrowed capital from the public. √
• The lender/debenture holder agrees to lend money to the company on certain
conditions for a certain period. √
• Debenture holders are creditors, as the company is liable to repay the amount
of the debentures. √
• Most types of debentures can be traded on the JSE. √
• Debenture holders receive annual interest payments based on the terms/
terms/ number of debentures held. √
• Any other relevant answer related to debentures as an investment
opportunity.
Heading: (2)
Discussion: (1)
Submax (3)
Business Ventures/Venture capital √√
• Venture capital is given by an investor/business to start expanding a business
in return to have a share in the new/expanded business. √
• Investor(s) should know the type of business/market/economic conditions
before a business is bought/started. √
• Buying a franchise/existing business will be successful, if the investors has
done proper research/understand exactly what he/she is investing in. √
• Any other relevant answer related to business ventures/venture capital as an
investment opportunity.
Heading: (2)
Discussion: (1)
Submax (3)
Page | 25

Endowment/Life insurance policies/Retirement Annuities√√
• A monthly payment is paid to an insurance company with the expectancy of
receiving a pre-determined amount on a date in the future. √
• To provide for a future expenses/give peace of mind to the dependants of the
insured. √
• Any other relevant answer related to endowment/life insurance
policies/retirement Annuities as an investment opportunity
Heading: (2)
Discussion: (1)
Submax (3)
NOTE: Mark the first TWO (2) only
Max (6)
QUESTION 3
3.1 Types of shares from statements
3.1.1 Bonus shares √
3.1.2 Preference shares √
3.1.3 Founders shares √
3.1.4 Ordinary shares √ (8)
3.2 Rights of ordinary shareholders

Shareholders have a right to:
• vote at the Annual General Meeting. √√
• attend the Annual General Meeting to learn about the company's
performance. √√
• receive interim and annual reports. √√
• claim on company assets in the event of bankruptcy after all other creditors
and preferential shareholders have been paid√√
• Any other relevant answer related to the rights of ordinary shares.
Max (6)
3.3 Forms of investment

3.3.1 Forms of investment from the scenario
FORMS OF INVESTMENTs MOTIVATIONS
1 RSA Retail Savings She chose an investment where she can
Bonds/Government Retail Bonds earn interest twice a year. √
√√
2 Unit trusts √√ She also chose another investment where
it will be easy to cash in when an investor
needs money. √
Page | 26

2. Award marks for the forms of investments even if the quotes
are incomplete.
3. Do not award marks for the motivations if the forms of
investments were incorrectly identified.
Max (6)
3.3.2 Impact of the RSA Retail Savings Bonds/Government Retail Bonds and
Unit trusts
Impact of RSA Retail Savings Bonds/Government Retail Bonds
• Guaranteed returns, √ as interest rate is fixed for the whole investment
period. √
• Interest rates are market related √ and attract more investors. √
• Interest is usually higher √ than on fixed deposits. √
• Retail bonds are listed √ on the capital bond markets/on the JSE. √
• Low risk/Safe investment, as it is invested with the South African
Government √ which cannot be liquidated. √
• No charges/costs/commissions payable √ on this type of investment. √
• Investment may be easily accessible, √ as cash may be withdrawn after the
first twelve months. √
• It is an affordable type of investment √ for all levels of income earners
including pensioners. √
• Retail bonds are easily/conveniently obtained √ electronically/from any Post
Office/directly from National Treasury. √
• Investors younger than 18 years/Minors may invest with the help of a legal
guardian, √ which encourages saving from a young age. √
• Any other relevant answer related to the positive impact/advantages of RSA
Retail Savings Bonds/Government Retail Bonds.
AND/OR
• Retail bonds cannot be ceded to banks √ as security for obtaining loans. √
• A minimum of R1 000 must be invested, √ which may be difficult for some
small investors to accumulate. √
• Retail bonds are not freely transferable √ amongst investors. √
• Investors need to have valid SA identification/should be older than 18 years
√ which may discourage foreigners/young people to invest. √
• Penalties are charged for early withdrawals √ if the savings is less than
12 months old. √
RSA Retail Savings Bonds/Government Retail Bonds.
Sub max 6
Page | 27

Impact of unit trusts
• Managed by a fund manager √ who buys shares on the stock
exchange/JSE. √
• A small amount can be invested √ per month. √
Beats inflation √ on the medium/long term. √

• Safe investments, √ as it is managed according to rules and regulations. √
• The investor has a variety to choose from/a wider range of shares √ from
lower to higher degrees of risk. √
• Easy to invest in, √ as investors simply complete a few relevant forms or
invest online. √
• Fluctuations in unit trust rates of return are often not so severe √ because of
diversity of the investment fund. √
• Offer competitive returns √ in the form of capital growth and dividend
distribution. √
• Fund managers are knowledgeable/experts/reliable/trustworthy √ as they are
required to be accredited to sell unit trusts. √
• Any other relevant answer related to the positive impact/advantages of unit
trusts.
AND/ OR
• Share price √ may fluctuate. √
• Unit Trusts are not allowed to borrow, √ therefore reducing potential returns.
√
• Not good for people who want to invest √ for a short period. √
• Not good for people who want to avoid risks √ at all costs. √
• If blue chip companies do not continue on their growth path, √ the growth of
unit trusts will also be affected and will not render the expected returns.
• Bid/Ask prices exist with the price that you can buy a unit for usually higher
than the price you can sell it for √ - making investment less liquid. √
Any other relevant answer related to the negative impact/disadvantages of
unit trusts. Sub max 6
NOTE: Do not accept responses that were quoted from the scenario in
QUESTION 3.1.1. Max (12)
Page | 28

3.4 Compound interest
Option 1
Year 1: R7000 x 10% = R700
Year 2: R7 700 √ x 10% = R770√
Total interest = R1470 √√√√
OR
Option 2
FORMULA: P x (1 + r) n√
R7 000 x (1+10/100)2 √
R7000 x (1.10)2 =R8470√
Total interest = R8470- R7000
= R1470√√√√
NOTE: 1. Award full marks (4) if the answer is correct and no workings are
shown.
2. If the formula and workings were shown correctly but the final
answer is wrong, award a maximum of THREE (3) marks.
3. If the workings and the answer are incorrect, award a maximum of
ONE mark for the formula.
Max (4)
QUESTION 4: Essay on investment securities
4.1 Introduction
• Ordinary shares provide the public the opportunity to own shares in

big companies √
• Preference shares can be considered as a viable investment option
as investors have various options to choose from. √
• Investing in shares enable investors to acquire financial knowledge
on various types of shares and stock markets √
• Investors can prepare for and finance their future needs by using
fixed deposits. √
• Compound and simple interests provide guidelines on different interest that
can be obtained in a fixed deposit √
• Any other relevant introduction related to ordinary/preference
shares/shares/fixed deposits simple and compound interests.
(2x1) (2)
4.2 Differences between the ordinary shares and preference shares
ORDINARY SHARES PREFERENCE SHARES
• Ordinary shares only receive • Some of these types of shares receive
dividends √ when profit is made. dividends √ regardless of profit made.
√ √
• Normally the higher the profit√, • A fixed rate of return is paid √ on this
the higher the dividend. √ type of shares. √
Page | 29

• Shareholders are the last to be • Shareholders have a preferred claim
paid√, if the company is declared on company assets√ in the event of
bankrupt/liquidated. √ bankruptcy/liquidation. √
• Ordinary shares are standard • These shares enjoy preferential rights√
shares√ with no special rights or to dividends/repayment over ordinary
restriction. √ shares. √
• Dividends vary from year to • Dividends are payable √ according to

year√ according to profits made the type of preference share. √
as determined by the company.
√
• Shareholders have a right to • Voting rights are restricted√ to
vote at the Annual General particular circumstances/resolutions. √
Meeting.

3. Award a maximum of FOUR (4) marks if the differences are not
clear/Mark either ordinary shares or preference shares only.
Max (8)
4.3 Types of preference shares
Participating preference shares√√
Shareholders:
• are guaranteed minimum√ fixed dividends.√
• are entitled to share in any√ surplus company profits.√
• receive higher dividends√ when the company performs well.√
• have preferential rights over ordinary shares√ on repayment when
the company closes down.√
• Any other relevant answer related to participating preference
shares.
Identification (2)
Explanation (2)
Submax (4)
Non-participating preference shares√√
Shareholders:
• receive an amount equal to the initial investment√ plus accrued and
unpaid dividends upon liquidation.√
• do not have right to participate in profits√ after equity shareholders
have been paid a dividend.√
• will not get extra dividend√ in case of surplus profits.√
• entitled to receive only a fixed rate of dividend√ every year.√
• Any other relevant answer related to non-participating preference
shares.
Identification (2)
Explanation (2)
Submax (4)
Page | 30

Cumulative preference shares√√
• Shareholders are compensated for past dividends that were not
paid out√ when profits were too low to declare dividends√/Receive
dividends not√ previously paid out.√
• Any other relevant answer related to cumulative preference shares.
Identification (2)
Explanation (2)
Submax (4)
Non-cumulative preference shares√√

• Shareholders are not compensated for past dividends√ that were
not paid out when profits were low.√
• Any other relevant answer related to non-cumulative preference
shares.
Identification (2)
Explanation (2)
Submax (4)
Redeemable preference shares√√

• Shares can be redeemed/bought back at the option of the issuing
company√, either at a fixed price on a specified date/over a certain
period of time.√
• Any other relevant answer related to redeemable preference
shares.
Identification (2)
Explanation (2)
Submax (4)
Non-redeemable preference shares√√
• Shares are only bought back when the company closes down√ for
reasons other than bankruptcy. √
• Any other relevant answer related to non-redeemable preference
shares.
Identification (2)
Explanation (2)
Submax (4)
Convertible preference shares√√

• Shares can be converted into a predetermined number of ordinary
shares√ on the date specified when the preference shares were
issued.√
• Any other relevant answer related to convertible preference shares.
Identification (2)
Explanation (2)
Submax (4)
Non-convertible preference shares√√
• Shares cannot be converted√ into ordinary shares. √
Page | 31

• Any other relevant answer related to non-convertible preference
shares.
Identification (2)
Explanation (2)
Submax (4)
NOTE: Mark the first FOUR (4) only.

Types (8)
Explanation (8)
Max (16)
4.4 Impact of shares and fixed deposits
4.4.1 Impact of shares
• Can be freely √ transferred/traded on the JSE. √
• Shareholders' liability to the debt of the company is limited√ to what
was invested/Shareholders have limited liability for company debts.
√
• Shareholders have voting rights√ at the annual general meeting
(AGM). √
• Investing in shares provides protection√ against inflation. √
• Investing in shares can provide solid returns√ at retirement age. √
• Rate of return on investment (ROI) is linked√ to the performance of
the company. √
• Ordinary shares are usually cheaper √ than preference shares on
the open market.√
• Holding a higher number of shares √ may result in higher
proportional dividend pay-outs. √
of shares.
AND/OR
• Shareholders may receive less dividends/no dividends √ when
company profits are low. √
• Companies have no legal obligation √ to pay dividends to
shareholders. √
• Risk may be high√, as investment may be lost when companies are
liquidated. √
• Dividends declared may be determined√ by the
management/directors of the company/business. √
• Any other relevant answer related to the negative
impact/disadvantages of shares.
Max (10)
4.4.2 Impact of fixed deposits
• Interest is earned at a fixed rate √ regardless of changes in the
economic climate. √
Page | 32

• The period of investment √ can be over a short/medium/long term. √
• Investors can choose the investment period √ that suits them. √
• The principal amount plus interest earned √ is paid out on the
maturity date. √
• Ensures financial discipline as investors cannot withdraw their funds
√ before the maturity date. √
• Investors earn a better return on investment √ than on an ordinary
savings account. √
• It has a low risk√ as investors are guaranteed of the final payment. √
• The higher the principal amount/the longer the investment period √,
the higher the interest rate offered by a financial institution. √
of fixed deposit as a form of investment.
AND/OR
• The investor cannot withdraw their funds √ before the maturity date.
√
• Low returns√ compared to other investments. √
• May not outperform the effect of inflation √ over the long-term. √
• Any other relevant answer related to the negative impact/
disadvantages of fixed deposit as a form of investment.
Max (6)
4.5 Differences between simple and compound interests

COMPOUND INTEREST SIMPLE INTEREST
• Interest earned on original amount • Interest earned on the original amount
invested, as well as interest earned in and not on the interest accrued. √√
previous period(s). √√
• The principal amount grows with the • The principal amount remains the
addition of interest to it. √√ same over the entire period of
investment. √√
• Interest is calculated on the higher • The interest is kept separate unless it
principal amount and again added to it. is reinvested. √√
√√
• Yields high return on investment. √√ • Yields less return on investment. √√
• Total amount of interest earned on • Total amount of interest earned on
investment is high. √√ investment is less. √√
• Any other relevant answer related to • Any other relevant answer related to
compound interest simple interest
Sub max 6 Sub max 6

3. Award a maximum of SIX (6) marks if the differences are not
clear/Mark either compound interest or simple interest only.
Max (12)
Page | 33

4.6 Conclusion
• Businesses should invest extra cash to generate more income rather than
leaving it in the businesses' current account. √√
• Dividends paid out on preference and ordinary shares will attract more people
to invest in a company. √√
• Anyone can invest in shares and fixed deposits as they are considered as the
most viable forms of investment. √√
• Various factors must be considered before choosing the interest the business
wants to earn on an investment. √√
• Any other relevant conclusion related to ordinary/preference
shares/shares/fixed deposits simple and compound interests.
(1x2) (2)
(40)
SESSION 5: INVESTMENT: INSURANCE
QUESTION 1
1.1.1 B √√
1.1.2 D √√
1.1.3 A √√
1.1.4 D √√ (8)
QUESTION 2
2.1 Meaning of the average clause

• A stipulation set by the insurer which is applicable when property/goods√ is
under insured/insured for less than its market value.√
• The insurer will pay for insured loss/damages√ in proportion to the insured
value.√
• This means that the insured is responsible for√ a part of the risk that is not
insured.√
• The insured amount is divided by the market value of the insured item√ and
multiplied by the total value/amount of the damages/loss.√
• Insurance companies apply the following formula to determine the amount to
be paid out to the insured:
• Amount insured √ x Amount of damages√
• Value of insured item
• Any other relevant answer related to the meaning of the average clause.
Max (4)
Page | 34

2.2 Differences between over insurance and under-insurance
OVERINSURANCE UNDER-INSURANCE
- Property/Assets are insured for - Property/Assets are not insured for
more than their actual/market their full market value.√√
value.√√
- The insurer can choose to - The insurer will apply the average
reinstate the insured instead of clause to determine the amount that
making a payment.√√ will be paid. √√
- The insured will not receive a pay- - The insured will only be paid out for the
out larger than the value of the loss amount that the goods/assets are
at market value.√√ insured for.√√
- Any other relevant answer related - Any other relevant answer related to
to overinsurance. under-insurance.

3. Award a maximum of FOUR (4) marks if the differences are
not clear/Mark either overinsurance or under-insurance only.
Max (8)
2.3 Principle of insurance
2.3.1 Principle of insurance from the scenario
PRINCIPLES OF INSURANCE MOTIVATIONS

1 Indemnification/Indemnity √√ Smart Insurers agreed to compensate
CM for losses specified in the
insurance contract. √
2. Utmost good faith√√ Charlie Manufactures was requested to
disclose everything that may affect the
extent of risk. √

2. Award marks for the principles of insurance even if the quotes
are incomplete.
3. Do not award marks for the motivations if the principles of
insurance were incorrectly identified.
Max (6)
2.3.2 Other principles of insurance
Security/Certainty√√
• Applies to long-term insurance√ where the insurer undertakes to pay out an
agreed upon amount in the event of loss of life.√
• A predetermined amount will be paid out√ when the insured reaches a pre-
determined age/or gets injured due to a predetermined event.√
Page | 35

• Aims to provide financial security√ to the insured at retirement/dependents of
the deceased.√
• Any other relevant answer related to security/certainty as a principle of
insurance.
Principle (2)
Explanation (2)
Submax (4)
Insurable interest√√
• Insured must prove that he/she will suffer a financial loss√ if the insured object
is damaged/lost/ceases to exist.√
• An insurable interest must be expressed√ in financial terms.√
• Insured must have a legal relationship√ with the insured object in the
contract.√
• Any other relevant answer related to insurable interest as a principle of
insurance.
Principle (2)
Explanation (2)
Submax (4)
NOTE: Mark the first TWO (2) only.

Max (6)
QUESTION 3
3.1 Meaning of insurance and examples of insurable risk
3.1.1 Meaning of insurance

• Insurance refers to cover for a possible event √ that may cause a specified
loss/ damage. √
• An agreement whereby the insurer undertakes to indemnify the insured√ in
the event of a specified loss/damage. √
• The insured has to pay a premium√ for specified losses/damages covered. √
• A contract between a person/business/insured requiring insurance cover√ and
the insurance company/insurer bearing the financial risk. √
• Any other relevant answer related to the meaning of insurance
Submax (2)
3.1.2 Examples of insurable risks
• Theft√
• Fidelity insurance√
• Burglary√
• Money in transit√
• Fire√
• Natural disaster/Storms/Wind/Rain/Hail√
• Damage to/Loss of assets/vehicles/ equipment/buildings/premises√
• Injuries on premises√
• Any other relevant examples of insurable risk
NOTE: Mark the first THREE (3) only. (3x1) (3)
Max (5)
Page | 36

3.2 Meaning of reinstatement
• It is a stipulation whereby the insurer may replace lost/damaged
property/goods√ instead of reimbursing the insured. √
• This stipulation is applicable when property/goods√ are over insured. √
• The re-instatement value will not be higher √ than the market value of the loss
√
• Insured is returned to almost the same financial position√ as before the loss
occurred.√
• Any other relevant answer related to the meaning of reinstatement
Max (4)
3.3 Insurance concept
3.3.1 Average clause √√ (2)
3.3.2 Formula for calculating the average clause
Amount insured X Amount of damages/loss √
Value of insured item
R300000 √ x R60000 √
R400000
=R45 000√√√√
NOTE: 1. Award full marks (4) if the answer is correct and no workings
are shown.
2. If the formula and workings were shown correctly but the final
answer is wrong, award a maximum of THREE (3) marks.
3. If the workings and the answer are incorrect, award a maximum
of ONE mark for the formula.
Max (4)
3.3.3 Excess (2)
QUESTION 4
4.1 Introduction
• Non-compulsory insurance provides businesses the opportunities to select
assets to be insured. √
• Business owners have a clear understanding of the financial impact of
accidents / disasters on the business, so they must make provision for that in
advance. √
• Unemployment Insurance Funds/UIF provides temporary financial relief for
people who become unemployed as provided if they contributed to the fund.
• Insurance plays a vital role in ensuring that businesses are sustainable. √
• COIDA relieves businesses' financial burden by compensating their
employees for occupational injuries and diseases. √
• Any other relevant introduction related to compulsory and non-compulsory
insurance /benefits paid out by the UIF/ advantages of insurance for
businesses/COIDA.
Any (2x1) (2)
Page | 37

4.2 Differences between compulsory and non-compulsory insurance
Compulsory insurance Non-compulsory insurance
Required by Law/there are legal Is voluntary/the insured has a choice
obligations for it to be taken out and whether to enter into an insurance
paid for. √√ contract. √√
It is regulated by Government and does Insured will enter into a legal insurance
not require insurance contracts/brokers. contract with the insurer, who may be
√√ represented by an insurance broker. √√
Payment is in the form of a Monthly/Annual payments/premiums
levy/contribution paid into a common that must be paid in order to enjoy cover
fund from which benefits may be claimed for a nominated risk. √√
under certain conditions.√√
Examples Examples
UIF, RAF and Compensation Short term insurance/Multi-peril
Fund/COIDA√ insurance (theft, fire, etc.) Long term
insurance/Life insurance √

3. Award a maximum of FOUR (4) marks if the differences are
not clear/Mark either compulsory insurance or non-
compulsory insurance only.
Max (8)
4.3 Types of benefits paid by the Unemployment Insurance Fund/UIF
4.3.1 Unemployment benefits√√

• Employees, who become unemployed/retrenched√ due to restructuring/an
expired contract, may claim within six months after becoming unemployed. √
• Unemployed employees may only claim√, if they contributed to UIF. √
• Unemployed employees enjoy these benefits √ until the allocated funds are
exhausted. √
• If a worker voluntarily terminates his/her contract√, he/she may not claim. √
• Tax is not payable√ on unemployment benefits. √
• The UIF Act has also been amended√ and extends to parents who do not
qualify for maternity leave, including fathers. √
• The UIF Act pays unemployment insurance benefits up to 10 days √which is
in line with the BCEA. √
• Any other relevant answer related to unemployment benefits as a type of
benefit paid by the UIF.
Benefit: 2
Explanation:2
Submax:4
Page | 38

4.3.2 Illness benefits/Sickness/ Disability√√
• Employees may receive these benefits if they are unable to work for more than
14 days√ without receiving a salary/part of the salary. √
• Employees may not claim these benefits√ if they refuse medical treatment. √
• Any other relevant answer related to illness benefits/sickness/ disability as a type
of benefit paid by the UIF.
Benefit: 2
Explanation:2
Submax:4
4.3.3 Maternity benefits√√

• Pregnant employees receive these benefits√ for up to 4 consecutive months. √
• If an employee had a miscarriage√, she could claim for up to six weeks/42 days. √
• Any other relevant answer related to maternity benefits as a type of benefit paid by
the UIF.
Benefit: 2
Explanation:2
Submax:4
4.3.4 Adoption benefits√√

• Employees may receive these benefits√ if they adopt a child younger than two
years. √
• Employees who take unpaid leave/may receive part of their salary while √ caring
for the child at home. √
• Only one parent/partner √ may claim for adoption leave .√
• Any other relevant answer related to adoption benefits as a type of benefit paid by
the UIF.
Benefit: 2
Explanation:2
Submax:4
4.3.5 Dependants' benefits√√
• Dependants may apply for these benefits if the breadwinner√, who has contributed
to UIF dies. √
• The spouse of the deceased may claim√, whether he/she is employed or not. √
• Any other relevant answer related to dependants' benefits as a type of benefit paid
by the UIF
Benefit: 2
Explanation:2
Submax:4
4.3.6 Temporary Employer/Employee Relief Scheme /TERS√√

• All employers and employees who are registered with the Department of
Employment√ and Labour can apply for this relief. √
• The scheme applies to employers who cannot pay their workers√ and employees
who will not get paid during the period of the lockdown. √
• This also applies to employees who have been forced to take leave √ because of
the coronavirus outbreak. √
Page | 39

• Any other relevant answer related to temporary employer/Employee Relief
Scheme as a type of benefit paid by the UIF
Benefit: 2
Explanation:2
Submax:4
NOTE: Mark the first FOUR (4) only.
Max (16)
4.4 Advantages of insurance for businesses

• Transfers the risk from the business/insured√ to an insurance company/insurer.√
• Transfer of risk is subject to the terms and conditions√ of the insurance contract.√
• Protects businesses against theft/loss of stock and/or damages√ caused by
natural disasters such as floods, storm damage. √
• Businesses will be compensated for insurable losses, √ such as the destruction of
property through fire. √
• Business' assets such as vehicles/equipment/buildings need to be insured√
against damage and/or theft.√
• Businesses are protected against the loss of earnings√, such as strikes by
employees which may result in losses worth millions. √
• Protects businesses√ against dishonest employees.√
• Life insurance can be taken on the life of partners in a partnership√ to prevent
unexpected loss of capital.√
• Should the services of key personnel be lost due to accidents/death,√ the
proceeds of an insurance policy can be paid out to the business/beneficiaries.√
• Replacement costs for damaged machinery/equipment are very high,√ therefore
insurance can reduce/cover such costs.√
• Protects businesses from claims made by members of the public√ for damages
that businesses are responsible for.√
• Protects businesses against losses√ due to death of a debtor.√
• Any other relevant answer related to the advantages of insurance for businesses.
Max (14)
4.5 COIDA as a type of compulsory insurance
• The fund covers occupational diseases and workplace injuries.√√
• Compensates employees for injuries and diseases incurred at work.√√
• Compensation paid is determined by the degree of disablement.√√
• The contribution payable is reviewed every few years according to the risk
associated with that type of work.√√
• All employers are obliged to register with the Compensation Fund so that
employees may be compensated for accidents and diseases sustained in the
workplace.√√
• The fund covers employers for any legal claim that workers may bring against
them.√√
• Employers are required to report all accidents within 7 days and occupational
diseases within 14 days to the Compensation Commissioner.√√
• Employees do not have to contribute towards this fund.√√
• Employers are responsible for contributing towards the fund and may not claim
money back from employees/deduct contributions from wages.√√
Page | 40

• In the event of the death of an employee as a result of a work-related accident/
disease, his/her dependant(s) will receive financial support. √√
• Employees receive medical assistance provided there is no other party/medical
fund involved.√√
• Any other relevant answer related to the Compensation Fund in terms of COIDA
as a type of compulsory insurance.
Max (12)
4.6 Conclusion
• Businesses should consider insuring their assets to be sustainable in the market
even if losses can occur.√√
• Business should comply with all types of compulsory insurance to avoid being
taken to court. √√
• Insurance allows businesses to recover from losses suffered after an unexpected
event took place. √√
• Employers and employees should ensure they follow precautionary measures to
avoid workplace injuries. √√
• Compensation fund helps employees to receive medical assistance provided
there is no other party/medical fund involved. √√
• Any other relevant conclusion related to compulsory and non-compulsory
insurance /benefits paid out by the UIF/ advantages of insurance for
businesses/COIDA.
Any (1x2) (2)
(40)
SESSION 6: TEAM PERFROMANCE AND CONFLICT MANAGEMENT
QUESTION 1
1.1.1 A √√
1.1.2 D√√
1.1.3 B √√
1.1.4 C√√
1.1.5 B√√
(10)
QUESTION 2
2.1 Characteristics of successful teams
• Successful teams share a common goal as team members are part of the process
of setting goals for the group. √√
• There is a climate of respect/trust and honesty. √√
• Share a set of team values and implement group decisions. √√
• Successful teams have sound intra-team relations. √√
• Teams value the contributions of individual members and reach consensus on
differences. √√
• Team members enjoy open communication and deal with items of conflict
immediately. √√
• Teams are accountable and members know the time frame for achieving their
goals. √√
Page | 41

• Teams pay attention to the needs of the individual team members. √√
• Creates an environment where team members are given opportunities to develop
so that team members grow and learn from the experience of working in a team.
√√
• Regular reviews of team processes and progress may detect/solve problems
sooner. √√
• Balance the necessary skills/knowledge/experience/expertise to achieve the
objectives. √√
• Any other relevant answer related to the characteristics of successful teams.
Max (6)
2.2 Stages of team development
2.2.1 Stages of team development from the scenario

STAGES OF TEAM MOTIVATIONS
DEVELOPMENT
1 Forming√√ Team members were comfortable and polite
with each other when they met for the first
time. √
2 Adjourning/Mourning√√ They ensured that all tasks need to be
completed before the team finally dissolves.
√

2. Award marks for the stages of team development even if the
quotes are incomplete.
3. Do not award marks for the motivations if the stages of team
development were incorrectly identified.
Max (6)
2.2 Criteria for successful team performance
2.2.1 Interpersonal attitudes and behaviour√√
• Members have a positive attitude of support√ and motivation towards each other.
√
• Good/Sound interpersonal relationships√ will ensure job satisfaction/increase
productivity of the team. √
• Members are committed/passionate√ towards achieving a common goal/
objectives. √
• Team leader acknowledges/gives credit√ to members for positive contributions. √
• Any other relevant answer related to interpersonal attitudes and behaviour as a
criteria for successful team performance.
Criteria: 2
Explanation:1
Submax (3)
Page | 42

2.2.2 Shared values/ Mutual trust and support√√
• Shows loyalty/respect/trust towards√ team members despite differences. √
• Shows respect for the knowledge/skills√ of other members. √
• Perform team tasks with integrity/pursuing√ responsibility/meeting team deadlines
with necessary commitment to team goals. √
• Any other relevant answer related to shared values/ mutual trust and support as
criteria for successful team performance.
Criteria: 2
Explanation:1
Submax (3)
2.2.3 Communication√√
• A clear set of processes/procedures for teamwork√ ensures that every team
member understands his/her role. √
• Quality feedback improves√ the morale of the team. √
• Open/Honest discussions√ lead to effective solutions of problems. √
• Continuous review of team progress√ ensures that team members can rectify
mistakes/act pro-actively to ensure that goals/targets are reached. √
• Any other relevant answer related to communication as criteria for successful
team performance.
Criteria: 2
Explanation:1
Submax (3)
2.2.4 Co-operation/ Collaboration√√
• Clearly defined realistic goals are set, √ so that all members know exactly what is
to be accomplished. √
• All members take part√ in decision making√
• Willingness to co-operate√ as a unit to achieve team objectives. √
• Co-operate with management√ to achieve team/business objectives. √
• Agree on methods/ways to get the job done effectively√ without wasting time on
conflict resolution. √
• A balanced composition of skills/knowledge/experience/expertise√ ensures that
teams achieve their objectives. √
• Any other relevant answer related to co-operation/collaboration as criteria for
successful team performance
Criteria: 2
Explanation:1
Submax (3)
Max (16)
2.3 Importance of team dynamic theories in improving team performance

• Businesses are able to allocate tasks according to the roles of team members. √√
• Team members can maximise performance as tasks are allocated according to
their abilities/skills/attributes/personalities. √√
• Team members with similar strengths may compete for team tasks/responsibilities
that best suit their abilities/competencies. √√
• Conflict may be minimised when team members perform different roles. √√
• Any other relevant answer related to importance of team dynamic theories.
(Max 6)
Page | 43

QUESTION 3: Essay question on team performance and conflict
management
3.1 Introduction
• Teams go through different stages of development that must be managed
carefully. √
• Conflict is inevitable when two or more people work together as a team. √
• Conflict is sometimes necessary for people to resolve differences and focus on
key objectives. √
• Managers should be well conversant with the causes of conflict and be able to
handle it effectively in the workplace. √
• Employees must be informed of the grievance procedure to avoid losing their jobs
• Difficult employees may influence their colleagues to adapt the same behaviour/
attitudes if businesses do not handle them in a correct manner. √
• Any other relevant introduction related to the causes of conflict /handle
conflict/dealing with grievances/dealing with difficult employees.
(2x1) (2)
3.2 Causes of conflict

• Lack of proper communication between management and workers. √√
• Ignoring rules/procedures may result in disagreements and conflict. √√
• Management and/or workers may have different personalities/backgrounds. √√
• Different values/levels of knowledge/skills/experience of managers/workers. √√
• Little/no co-operation between internal and/or external parties/stakeholders. √√
• Lack of recognition for good work, e.g., a manager may not show appreciation for
extra hours worked to meet deadlines. √√
• Lack of employee development may increase frustration levels as workers may
repeat errors due to a lack of knowledge/skills. √√
• Unfair disciplinary procedures such as favouritism/nepotism. √√
• Little/no support from management with regards to supplying the necessary
resources and providing guidelines. √√
• Leadership styles used, e.g., autocratic managers may not consider workers
inputs. √√
• Unrealistic deadlines/Heavy workloads lead to stress resulting in conflict. √√
• Lack of agreement on mutual matters such as remuneration/working hours. √√
• Unhealthy competition/Inter-team rivalry may cause workers to lose focus on team
targets. √√
• Lack of commitment/Distracted by personal objectives which may lead to an
inability to meet pre-set targets. √√
• Constant changes may cause instability. √√
• Lack of clarity regarding employees' roles and responsibilities. √√
• Any other relevant answer related to causes of conflict in the workplace
Max (12)
Page | 44

3.3 Handling of conflict the workplace
• Acknowledge that there is conflict √ between employers/employees/parties in the
workplace. √
• Identify the cause √ of the conflict. √
• Arrange pre-negotiations where workers/complainants will be allowed √ to
state their case/views separately.√
• Arrange time and place for negotiations √ where all employees involved are
present. √
• Arrange a meeting √ between conflicting employers/employees. √
• Make intentions for the intervention clear √ so that parties involved may feel at
ease. √
• Each party has the opportunity to express √ his/her own opinions/feelings. √
• Conflicting parties may recognise that their views are different √ during the
meeting. √
• Analyse/Evaluate the cause(s) of conflict √ by breaking it down into different parts.
√
• Blame shifting should be avoided √ and a joint effort should be made. √
• Direct conflicting parties √ towards finding/focusing on solutions. √
• Devise/Brainstorm possible ways √ of resolving the conflict. √
• Conflicting parties agree on criteria √ to evaluate the alternatives. √
• Select/Implement √ the best solution. √
• Provide opportunities for parties√ to agree on the best solution.√
• Evaluate/Follow up √ on the implementation of the solution(s). √
• Monitor progress √ to ensure that the conflict has been resolved. √
• Source experts on handling conflict√ from outside the business. √
• Any other relevant answer related to other steps in handling conflict in the
workplace.
Max (12)
3.4 Correct procedures to deal with grievances

• An aggrieved employee must verbally report √ the incident/grievance to his/her
supervisor/manager√.
• Supervisor/manager needs to resolve the issue √ within three to five (3 to 5)
working days.√
• Should the employee and supervisor not be able to resolve the grievance√, the
employee may take it to the next level of management.√
• The employee may move to a more formal process where the grievance√ must be
lodged in writing/completes a grievance form.√
• The employee must receive a written reply√ in response to the written grievance.√
• A grievance hearing/meeting must be held√ with all relevant parties present.√
• Minutes of the meeting must be recorded√, and any resolution passed must be
recorded on the formal grievance form.√
• Should the employee not be satisfied√, then he/she could refer the matter to the
highest level of management.√
• Top management should arrange a meeting √ with all relevant parties
concerned.√
• Minutes of this meeting should be filed/recorded√ and the outcome/decision
Page | 45

must be recorded on the formal grievance form.√
• Should the employee still not be satisfied√, he/she may refer the matter to the
CCMA who will make a final decision on the matter.√
• The matter can be referred to the Labour Court on appeal√ if the employee is not
satisfied with the decision taken by the CCMA.√
• Any other relevant answer related to the correct procedure to deal with grievances
in the workplace.
NOTE: The procedure may be in any order.

Max (12)
3.5 Dealing with difficult employees in the workplace

• Act pro-actively if possible, as a staff/personnel problem is part of a manager's
responsibilities. √√
• Regular meetings with supervisors/departmental heads should help to identify
difficult/problem behaviour. √√
• Ask someone in authority for their input into the situation. √√
• Identify the type of personality which is creating the problem. √√
• Meet privately with difficult employees, so that there are no distractions from other
employees/issues. √√
• Make intentions and reasons for action known, so that difficult person/people feel at
ease. √√
• Employees should be told what specific behaviours are acceptable by giving details
about what is wrong/ unacceptable and also an opportunity to explain their
behaviour. √√
• A deadline should be set for improving bad/difficult behaviour. √√
• The deadline date should be discussed with the difficult employee and his/her
progress should be monitored/ assessed prior to the deadline. √√
• Guidelines for improvement should be given. √√
• Do not judge the person but try to understand him/her/Understand his/her intentions
and why he/she reacts in a certain way. √√
• Build rapport/sound relations by re-establishing personal connection with
colleagues, instead of relying on e-mails/messaging/social media. √√
• Help difficult employees to be realistic about the task at hand. √√
• Remain calm and in control of the situation to get the person(s) to collaborate. √√.
• Sometimes it may be necessary to ignore and only monitor a difficult person. √√
• Identify and provide an appropriate support program to address areas of weakness.
√√
• Any other relevant answer related to dealing with difficult people in the workplace.
Max (10)
3.6 Conclusion
• Businesses should immediately identify the causes of conflict and ensure that
conflict is resolved amicably in the workplace.√√
• Business objectives can be achieved if conflict is resolved effectively. √√
• Businesses must acknowledge employees' differences and develop strategies to
deal with these differences. √√
Page | 46

• Dealing with difficult employees will enable businesses to find better ways to manage
them √√
• Any other relevant conclusion related to the causes of conflict /handle
conflict/dealing with grievances/dealing with difficult employees.
(1 x2) (2)
(40)
Page | 47

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Business Studies

© Gauteng Department of Education

SESSIONS TOPICS PAGES

1 Business Sectors and their environments 3-4

2 Quality performance 4-14

3 Management & leadership 15-20

4 Investments: Securities 24-30

5 Investment: Insurance 34-41

6 Team Performance & Conflict Management 41-47

© Gauteng Department of Education

NOTE: 1. Mark the first TWO (2) only.

NOTE: Do not award marks for the motivation if the method of

© Gauteng Department of Education

NOTE: 1. Mark the first TWO (2) only.

© Gauteng Department of Education

• Increasing their √ market share. √

• Fast and reliable data capturing√ and processing systems. √

© Gauteng Department of Education

QUALITY MANAGEMENT QUALITY PERFORMANCE

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

2.3 Benefits of good quality management system

NOTE: 1. Mark the first TWO (2) only.

2.3.2 Other benefits of good quality management system

© Gauteng Department of Education

2.4 Contribution of the production function and human resources

2.4.1 Production function

2.4.2 Human resources function

© Gauteng Department of Education

3.1 Meaning of total quality management /TQM

3.2 Advantages of continuous skills development

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3.3.2 Impact of adequate financing and capacity and continuous

Impact of adequate financing and capacity on large businesses

• Large businesses have sufficient financing to test everything before

Impact of continuous improvement to processes and systems

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

4.3 Ways in which TQM can reduce the cost of quality

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4.4. Impact of monitoring and evaluating quality processes and total

4.4.1 Impact of monitoring and evaluating quality processes

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4.5 Role of quality circles as part of continuous improvement to processes

• Solve problems related to quality and implement improvements. √√

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SESSION 3: MANAGEMENT AND LEADERSHIP

1.1 Differences between leadership and management

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1.2.1 Leadership styles from the scenario

LEADERSHIP STYLES MOTIVATIONS

NOTE: 1. Mark the first TWO (2) only.

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Situations in which the laissez-faire/free-reign leadership style can be

Laissez-faire/free-reign can be used when:

Situations in which the transactional leadership style can be applied

1.3 Differences between the democratic and autocratic leadership styles

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2.1 Leadership style

2.1.1 Leadership style from the scenario

Autocratic leadership style √√

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3.2 Meaning of management and leadership