june 2015 grade 11 - best...

BUSINESS STUDIES GRADE 11 JUNE 2015

Mpumalanga Department of Education 2015 Business Studies Grade 11 Question Paper for June Examinations

MARKS: 200

TIME: 2 hours

This question paper consists of 13 pages.

BUSINESS STUDIES

QUESTION PAPER

GRADE 11

JUNE 2015



INSTRUCTIONS AND INFORMATION Read the following instructions carefully before answering the questions. 1. This question paper consists of THREE sections, namely: 2. SECTION A: COMPULSORY. SECTION B: Consists of FIVE independent questions. Answer ANY THREE questions in this section. SECTION C: Consists of FOUR questions. Answer ANY TWO of the questions from this section. 3. Consider the time allocated for each question when answering the questions. 4. Read the instructions for each question carefully and answer only what is required. 5. Number the answers correctly according to the numbering system used in this question paper. 6. Except where other instructions are given, answers must be in FULL SENTENCES. 7. The mark allocation of each question will determine the length of your answer. 8. Start the answer to each question on A NEW PAGE, for example QUESTION 1 New page, QUESTION 2 new page, etc. 7. Use the table below as a guide for marks and time allocation for each

question: SECTION QUESTION MARKS TIME A: Multiple- choice question, Matching

items. COMPULSORY 1 40 30 min

B. Five direct questions. Answer Any THREE questions

2

60 30 min

3 60 30 min 4 60 30 min 5 60 30 min. 6 60 30 min. C: Essay questions. Answer Any

TWO of the four questions 7 40 30 min.

8 40 30 min. 9 40 30 min.

10 40 30 min. TOTAL: 300 180 MIN.



SECTION A: COMPULSORY QUESTION 1: 1.1 Choose the correct answer from the options given below each statement. Write only the letter of the answer next to the question number. E.g. 1.1.11. E 1.1.1. A business can have full control over…

A. Inflation B. The vision C. Customers D. Economy

1.1.2. A trade mark is a…

A. slogan B. logo C. brand name D. All of the above

1.1.3. Membership in a private company is 1 to … number of shareholders

A. 20 B. 7 C. infinity D. 50

1.1.4. A business‟ code of conduct is …

A. the process that must be followed when an employee is disciplined B. a list of ethical issues that staff must study.

C. a set of requirements for employees so they know what their duties are. D. a set of rules outlining the level of performance required of a person or organisation.

1.1.5. A high employee turnover rate in a business is a challenge in the

… environment. A. macro environment B. human resources C. market D. micro

1.1.6. A Gantt chart ...

A. shows planned activities only. B. depicts responsibility. C. assesses quality. D. tracks progress.



1.1 7 … is usually responsible for corporate strategic planning

A. Top management B. Supervisors

C. Lower-level management D. Employees

1.1.8 The movement of money in and out of the business is called...

A. budget B. balance sheet C. cash flow D. profit

1.1.9 . . . is classified under the primary sector A. Forestry B. Financing C. Manufacturing D. Transport 1.1.10 Money paid to the original musician or producer for each performance of their

work

A. Rent B. Interest C. Profit D. Royalties (10x2) (20)

1.2. Choose the most suitable answer from the options provided in brackets and write down only the answer next to the corresponding number, e.g. 1.2.6 Micro 1.2.1. Lack of skilled workers is a result of (corruption / illiteracy). 1.2.2. The (co-operative / personal liability company) is one where all the past and present directors have unlimited liability for the business debts. 1.2.3. The creative problem-solving technique that is used to gain input from experts and it does not need to be face-to-face, is known as (Delphi technique/ Empty chair). 1.2.4. (Sole proprietor / partnership) is formed by at least two persons..

1.2.5. The business environment is (static / dynamic).

(5 x 2 = 10)



1.3. Match the columns by writing down the number in COLUMN A and the

appropriate letter from COLUMN B.

COLUMN A COLUMN B 1.3.1. Code of ethics A. Structure of human populations,

specially relating to birth, deaths, wealth, and disease.

1.3.2. Micro lenders B. Fine payable for breaking a contract 1.3.3. Demographic

C. Make something known to others

1.3.4. Penalty

D. The people or businesses who loan small amounts of money to customers

1.3.5. Disclosure

E. A questionnaire used to solve complex problems

F. Set of standards about behaviour that people agree to follow

(5 x 2 = 10) TOTAL SECTION A: 40 SECTION B Answer ANY THREE questions from the five questions in SECTION B. The answers to EACH question must be on a NEW page. QUESTION 2 Read the scenario below and use it as a basis when answering the questions below.

Orange Blossoms challenges Orange Blossoms is a fruit farmer in the Lydenburg area. He has the farm that grows oranges, nectarines and lemons. He also started his own fruit outlets on the farm as well as in Lydenburg. Orange Blossoms transports his fruit himself in a truck. He has 20 workers on the farm and 1 worker in the farm stall on the farm. He has 3 workers in the outlet in town. He provides accommodation on the farm for all the workers except the 3 workers that live in a village closer to the farm stall in town. He pays them extra for taxi fees to and from work. Orange Blossoms owner is concerned about the fuel price increase because most of his machinery works with diesel. This will increase the production costs



of his fruit. His workers must get an increase in two months‟ time and he does not know if he can afford an increase of 7% that is on the table. A convenience store in Lydenburg is negotiating with Orange Blossoms owner to supply fruit to them as well. He is able and willing to supply them with fruit, but he is still considering if he wants to allow them to pay after 30 days and not on delivery. He has to think about the implications of the National Credit Act on him and his business.

2.1.1.Discuss the level of control and/or influence that Orange Blossoms has over the

three business environments that will influence his business. (6) 2.1.2.Identify THREE challenges that Orange Blossoms is facing with his business and

classify them in the business environments. Draw a table to answer the question

(Environments 3x2=6) (Challenges 3x2=6)

Environment Challenges

2.1.3 Suggest possible ways in which Orange Blossoms can overcome or control

these challenges mentioned in question 2.1.2 (6) 2.2 Name the business sectors in which Orange Blossoms operates? Motivate your answer. (8) 2.3. Distinguish between Lock-out and go-slows. (8)



2.4. Study the data below and answer the questions that follow.

Estimated HIV prevalence (%) among pregnant woman by province 2001-2009.

Province 2001 2002 2003 2004 2005 2006 2007 2008 2009 Kwazulu-Natal

33,5 36,5 37,5 40,7 39,1 39,1 38,7 38,7 39,5

Mpumalanga 29,2 28,6 32,6 30,8 34,8 32,1 34,6 35,5 34,7 Free State 30,1 28,8 30,1 29,5 30,3 31,1 31,5 32,9 30,1 Gauteng 29,8 31,6 29,6 33,1 32,4 30,8 30,5 29,9 29,8 North West 25,2 26,2 29,9 26,7 31,8 29,0 30,6 31,0 30,0 Eastern Cape

21,7 23,6 27,1 28,0 29,5 28,6 28,8 27,6 28,1

Limpopo 14,5 15,6 17,5 19,3 21,5 20,6 20,4 20,7 21,4 Northern Cape

15,9 15,1 16,7 17,6 18,5 15,6 16,5 16,2 17,2

Western Cape

8,6 12,4 13,1 15,4 15,7 15,1 15,3 16,1 16,9

National 24,8 26,5 27,9 29,5 30,2 29,1 29,4 29,3 29,4

2.4.1 Comment on the trend of the national results for the years 2007-2009. Support your answer with figures. (4)

2.4.2 Identify the Province which had the highest HIV percentage in 2004? (2)

2.4.3 Discuss the effect of HIV and Aids on business. (6)

2.4.4 Suggest strategies which the business can put in place to alleviate HIV/AIDS (4)

2.4.5 Individuals who have HIV and Aids stress about their situation. Propose TWO personal strategies will you recommend them to use to manage stress? (4)

[60] QUESTION 3 3.1. Discuss negative impact, which the following socio-economic issues may have on businesses. 3.1.1. Crime, (6) 3.1.2. Piracy (4) 3.1.3. Mismanagement of funds (4) 3.2. Explain the concepts “intellectual property” (4)



3.3. Classify each of the following statements as either an unethical business practise or unprofessional business practice 3.3.1. Yvonne downloads personal information for her husband at work 3.3.2. The security guards at Riverside Government Complex refuse to open the gates for visitors because their company did not buy them new uniform 3.3.3. A nurse at Steve Biko hospital is absent from duty without a valid reason 3.3.4. Mary uses the company‟s credit card to pay for her family‟s holiday. 3.3.5. A traffic officer accepts a bribe from a driver. (5 x 2 =10) 3.4. The Labour Relation Act 66 of 1995 allows for the developments in industrial relations that relates to contemporary business practices. 3.4.1. Outline the purposes of Labour Relations Act. (10) 3.4.2. Differentiate between protected and unprotected strike (8) 3.4.3. Define collective bargaining. (2) 3.5. Illustrate the differences between Partnership and Close Corporation using the table below. Criteria Criteria Partnership Close Corporation 3.5.1 Legal formation 3.5.2 Liabilities of members for

debts

3.5.3 Legal personality 3.5.4 Continuity 3.5.5 Sources of capital

3.5.6 Who is responsible for tax? (12) [60]



QUESTION 4: 4.1 4.1.1 Name characteristics of a State-owned company. (10) 4.1.2 List FIVE advantages of a Non- profit Company (10) 4.2 Before an entrepreneur can put time, effort, money and other resources into a possible venture, he needs to get some advice on avenues available to start a business.

4.2.1. Discuss FOUR advantages of starting a new business (8) 4.2.2 List advantages of buying an existing business. (4) 4.3. Many businesses choose to lease movable assets than to buy them. 4.3.1 Outline THREE disadvantages of leasing movable assets. (6) 4.3.2. State SIX clauses that should be included in the lease contract. (12) 4.4 Read the scenario below and answer the questions that follow:

A business plan is a written document describing the nature of the business, the sales and marketing strategy, and a financial background, and contains a projected profit and loss statement. A business plan must be transformed into an action plan.

4.4.1. Define an action plan. (2) 4.4.2. Name FOUR advantages of using a Gantt chart to transform a business plan into

an action plan. (8) [60]



QUESTION 5 5.1

SINDANI MANUFACTURES fake perfumes. The packaging brand names and logos look like the original products. He sells the perfumes to street hawkers who, in turn, sell them to the public.

5.1.1. Differentiate between ethics and professionalism. (8) 5.1.2. Does Sindani follow ethical business practices? Suggest TWO reasons for your answer. (4) 5.1.3. Explain FIVE advantages associated with operating your business ethically. (10) 5.2 Consider the following scenario and answer the questions that follow:

Large businesses losses huge amounts of monies every year due to stress related cases. They experience decrease in productivity and they incur a lot of expenses when they has to recruit and train new employees.

5.2.1. Define the term „stress‟ (2)

5.2.2. Discuss FIVE business related crises. (10) 5.3. „Problems within the business need to be solved as soon as possible.‟ 5.3.1. Describe SEVEN steps that must be followed when solving a problem. (14) 5.3.2. Compare routine thinking and lateral thinking (4) 5.4. Explain the purpose of the following Margerison-McCann theories.

5.4.1. Assessor-developer (3)

5.4.2. Explorer-promoter (3)

5.5. Evaluate the impact of sexual harassment in the workplace. (2)

[60]



QUESTION 6:

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

Your friend, Molefe, has decided that she wants to go into business and she wants to start a company. She has no idea of what a company is or even that there are different types of companies.

6.1.1. Briefly describe Memorandum of Incorporation (2)

6.1.2. Explain the document Company‟s prospectus (2)

6.1.3. State FOUR items which should be included in a prospectus (8)

6.2. Read the information below and answer the question that follow:

The SCAMPER technique is based on the notion that everything new is a modification of something that already existed. Each letter in the acronym SCAMPER represents a different way you can play with the characteristics of what is challenging you to come up with a new idea.

6.2.1. State the meaning of each letter in the acronym SCAMPER (14) 6.3. „Outsourcing process requires time and investment to find the right persons or business, to build a working relationship and allow employees to adapt to change‟ 6.3.1. Briefly explain FOUR advantages of outsourcing a business service (8) 6.4. Name the steps in designing a presentation either orally or in writing. (10) 6.5. Explain FOUR aspects that can help the presenter to respond more effectively to

questions from the audience. (8)

6.6. Name FOUR advantages of a business that operates in a formal sector. (8) [60] TOTAL SECTION B: 180



SECTION C Answer any TWO questions in this section. QUESTION 7 Read the following case study and then answer the questions that follow: Economic relationship with significant parties in the business environment can help a business enterprise cope with challenges. There are different kinds of relationships, businesses face in the environment. Write an essay on economic business relationships under the following headings:

x Explain lobbying and outline practical ways in which businesses can lobby political decision makers on labour policies.

x Explain power relationships and discuss strategies which can be applied to balance power in the power relation.

x Explain networking and it‟s the advantages x Describe what hedging against inflation means and explain reasons why

business should do it, also indicate practical ways of hedging against inflation (40)

QUESTION 8 Nando‟s is a franchise is a fast food enterprise. They are found in almost every city around the country. A small business owner buys the right to sell the goods and services of a large well-established company. The person buying a franchise is known as franchisee and the person selling the rights is known as a franchisor. Elaborate on the contents of a contract and in your discussion include advantages and disadvantages of both franchisor and franchisee. (40) QUESTION 9 Many people have suggested theories on how to manage change when dealing with business related theories. Generally people do not like change. It is human nature to resist change. John Kotter is one of the people who suggested these theories. Identify different kinds of change and discuss the reasons for resisting change. Suggest strategies to cope with change and discuss ANY TWO theories of change (40)



QUESTION 10

Trade unions in South Africa play an important role in influencing the labour market and industrial relations policies for employees.

Discuss the role and functions of trade unions, as well as how they should handle grievance procedures. (40) GRAND TOTAL: 300

Total section C: [80]

1

MPUMALANGA DEPARTMENT OF EDUCATION 2015 Business Studies Grade 11 June Examination Memorandum

MARKS: 200

TIME: 2 hours

BUSINESS STUDIES

MEMORANDUM

GRADE 11

JUNE 2015

2


Notes to Educators:

1. Candidate`s responses must be in full sentences for section B and C depending on the nature of the question

Full sentence √√(2) Words / phrases √ (1)

2. A comprehensive memorandum has been provided but this is by no means exhaustive, due to consideration should be given to answer that is correct but

x Uses a different expression from that which in the memorandum.

x Comes from another source x Is correct and original topic

3. Please take careful note of other relevant answers provided by candidates and allocate marks accordingly. 4. Section B: 4.1 If, for example FIVE facts are required, mark the candidates FIRST FIVE responses and ignore the rest of the responses. 4.2. If two facts are written in one sentence, award the candidate full credit. 4.3 In questions that require candidates to “name/list”, the answers of the candidates should be in full sentences can be in phrases and not necessarily in full sentences. 5. Section C 5.1 The breakdown of the mark allocation for essays is as follows:

CONTENT MARKS Facts 32 L 2 A 2 S 2 O 2 TOTAL 40

5.2 INSIGHT CONSISTS OF THE FOLLOWING COMPONENTS

Layout / Structure

(is there an introduction, body using proper paragraphs and conclusion/ is there a logical flow /link in the discussion?)

2

Analysis: and interpretation

Did the learner break down the question to show understanding of what is being asked?

2

Synthesis Did the learner put together only the relevant parts to the question?

2

Originality Examples, recent information, current trends and developments

3


SECTION A: COMPULSORY

QUESTION 1

Choose the correct answer from the options given below each statement. Write ONLY the letter of the answer next to the question number. E.g. 1.1.11. E

1.1.1 B √√

1.1.2. D√√

1.1.3. C √√

1.1.4. D √√

1.1.5. D. √√

1.1.6 B √√

1.1.7. A √√

1.1.8 C. √√

1.1.9 A√√

1.1.10. D. √√ (10 x2) (20) 1.2.

1.2.1. Illiteracy √√ 1.2.2. Personal Liability Company √√ 1.2.3. Delphi technique √√ 1.2.4. Partnership √√ 1.2.5. Dynamic √√ (5x2) (10 1.3

1.3.1. F √√ 1.3.2 D √√ 1.3.3. A √√ 1.3.4 B √√

1.3.5. C√√ (5x2) (10)

TOTAL SECTION A: 40

4


SECTION B

QUESTION 2

2.1.1

x Micro environment √ – full/total control and influence √

x Market environment √– some/a little control and influence √

x Macro environment √– no control and very little influence √

Environment 1 x3=3 marks Control 1 x3=3 marks Max 6

2.1.2.

Environment Challenges

Micro environment √√

7% increase in wages on the table √√

Market environment √√

New customer/convenience store √√

Macro environment √√ x Increase in fuel price √√ x Impact of National Credit Act √√ x Change in weather patterns/global

warming √ √ Environment 3x2=6 Challenges 3x2=6 Max 12 2.1.3 Ways in which Orange Blossoms can overcome or control these challenges

mentioned in question 2.1.2 x Increase in fuel price – regular maintenance on vehicles/machinery; plan routes

better √√

x 7% increase in wages on the table – consider other benefits e.g. extra day leave and negotiate for a lower percentage increase/lower working hours per day √√

x New customer/convenience store – negotiate cash on delivery or better payment options. √√ Impact of National Credit Act – get training in NCA and its implications/ do not sell on credit √√

x Change in weather patterns/global warming – build greenhouses/change to types of fruit that will be more adaptable/ suitable for current weather patterns. √√

x Any other acceptable way to overcome challenges

3x2=6

5


2.2 In which business sector(s) operates Orange Blossoms business? Motivate your answer...

x growing and harvesting fruit on the farm √√ - Primary sector √√

x selling and distributing fruit to fruit stalls √√ - Tertiary sector √√

(2 x 4=8) Name/identify = 2 marks Reason = 2 marks

2.3. Differences between lockouts and go-slows.

Lock-outs Go-slows x Lockout is an action by the employer

to force the employees to agree to the demands of the employer. √√

x The employer locks the employees out of the workplace, meaning that they are not allowed onto the work premises.√√

x This is action is taken when employer fears employees are going to cause damages to the business assets.√√

(sub max 4)

x Go-slows is an industrial action where workers put pressure on the employer, by working on a slower pace than normal, to slow down production. √√

x This action causes losses for the business that can`t be recovered.√√ ( sub max4)

(max 8)

2.4.

2.4.1 Trend.

x The national results for HIV prevalence stayed almost same. √√ x It is around 29,4 %. √√ x High in 2007 and 2009 (it was 29.4%) √√ x Lower in 2008 ( it was 29.3%√√ (max 4)

2.4.2 KwaZulu Natal √√ (do not accepts figures ) (2)

2.4.3 Effect/ impact of HIV/AIDS on the business

x HIV and Aids decrease the productivity of the business because those who contract HIV and Aids are prone to be more absent from work. √√

x Furthermore those who have HIV and Aids are less energetic and perform at a slower pace than normal. √√

6


x Skilled employees pass away due to the disease and new ones have to be trained to replace them. This increases business expenses. √√

x Employees have to tend to family members who have HIV and Aids and also take leave to attend funerals. √√

x Businesses have to incur extra costs for social responsibility, counselling, medical expenses and remedies (anti-retroviral and vitamins). √√ (max 6)

2.4.4. Strategies to alleviate HIV/AIDS

x Counselling can be offered to help employees cope with the death of a loved one due to HIV and Aids or to cope with living with the disease. √√

x Businesses can offer talks/conferences on HIV /Aids to employees so that less of them will contract HIV and Aids. √√

x Free condoms can be kept in bathrooms. √√ x Voluntary testing can be offered at the workplace with the assurance that the

person’s status will be confidential. √√ (max 4)

2.4.5 Managing stress

x Develop your self-awareness to recognise the signs of stress and its causes √√ x Create a balanced life and minimise extreme emotions and chaos √√ x Exercise regularly and keep fit √√ x Follow a balanced diet √√ x Get enough sleep and adequate relaxation √√ x Replace negative self-talk with positive thoughts √√ x Stop worrying about things that are beyond your control √√ (max 4)

[60]

QUESTION 3

3.1. The negative impact, which the following socio-economic issues may have on businesses.

3.1.1. Crime.

x Clients will avoid businesses that are situated in high- crime areas. This will have a negative influence on sales / rate of turnover of the businesses.√√

x Businesses must increase their expenses to take precautionary measures like taking out insurance, installing alarm systems, employing security guards.√√

x Extra expenses decrease the profit, which may results in the closing down of the business or retrenchments.√√

x Injuries and death of skilled workers as a result of crime, has a financial burden on the business. .√√

x Shoplifting contributes to a decrease in profit as extra measures must be put in place to address crime. .√√

7


x Foreign investors may not invest or may disinvest in our businesses, because of the high crime rate. .√√ (max 6)

3.1.2. Piracy

x It is a problem that seriously undermines certain industries (music industry and movie industry) worldwide √√

x Creative industries and their artists lose money – threatens industry √√ x Drives prices of products up in order to compensate for the loss in sales √√ x Leads to job losses and to music industry being reluctant to develop new talent as

the element of risk involved is too high and with such a small profit margin – it is not worth the risk √√

x Law protects against piracy by awarding owners of intellectual property sole rights in the form of copyrights, patents and trademarks √√ (max 4)

3.1.3. Mismanagement of funds

x The business incurs extra costs by putting internal control measures into place to prevent mismanagement of funds√√

x Fraud increases the cost of doing business, affects competition and discourages investors by adjusting prices upwards to absorb the losses √√

x Business core function is distracted by conducting educational work amongst employees about the impact of fraud and understand that fraud prevention as a collective responsibility √√

x Extra expenses are incurred by installing systems in place to reduce fraud, e.g. by internal audit and risk management√√

x Businesses loose on the profit because of fruitless expenses because funds are misappropriated. .√√ (max 4)

3.2. Intellectual property.

x Intellectual property refers to the creations of the imagination, intellect or mind √. This property is intangible√ and does not exist as a physical thing √, but has value √. Intellectual Property includes copyright, trademarks and patents. (4)

3.3.

3.3.1. Unethical √√

3.3.2. Unprofessional √√

3.3.3. Unprofessional √√

3.3.4. Unethical √√

3.3.5. Unprofessional √√ (10)

8


3.4.

3.4.1 The purposes of Labour Relations Act.

x To advance economic development, social justice, labor peace and the democratization of the workplace.√√

x Provide a framework within which workers and trade unions. Employers and employees’ organizations can collectively bargain to determine wages, terms and conditions of employment and other matters of mutual interest. .√√

x Formulates industrial policy and promotes orderly collective bargaining.√√ x Promotes employee participation in decision making in the workplace.√√ x Promotes the effective resolution of labour disputes.√√ x Allows for the formulation of workplace forums.√√ x Incorporates third party interventions by trade unions and the CCMA.√√ max (10)

3.4.2.

Protected strike Unprotected strike x Authorised / legal strike

x Procedures required by Labour

Relations Act have to be followed

x Employees cannot be dismissed for embarking on a strike/ legal action

x When a deadlock in a Bargaining Council/ Collective Bargaining Chamber has been reached sub max (4)

x Unauthorised/ illegal strike

x Strike where employees did not follow the proper procedures required by the Labour Relations Act

x Employees can be dismissed for embarking on a strike/ industrial action

x No attempt to resolve through conciliation

sun max (4)

max (8)

3.4.3. Collective bargaining.

x The process to allow for discussions and negotiations between management and trade unions to reach agreement on remuneration, working conditions or other issued related to the workplace. .√√ (2)

9


3.5 Criteria Partnership Close corporation 3.5.1 Legal formation

No legal Formalities/Partnership articles √

Founding statement Was used √

3.5.2 Liabilities of members for debts

Partners are jointly and severally liable for the debts of the business √

Limited liability, except where CC has more than ten members for six months or longer √

3.5.3 Legal personality Partnership does not have a separate legal personality√

CC has own legal personality. Members have limited liability. √

3.5.4 Continuity No Continuity √ Has perpetual succession i.e. unlimited continuity √

3.5.5 Sources of capital

Partners provide own capital or may borrow capital √

Contribution of members√

3.5.6 Who is responsible for tax? Partners are responsible for own tax√

Cc needs to pay company tax and members are responsible for personal tax. √

Max (12) [60]

10


QUESTION 4

4.1.

4.1.1. Characteristics of a State-owned company.

x One or more persons (including juristic persons) may incorporate.

No limit on number of shareholders. √√

x One or more directors are required in a state-owned company. √√

x An SOC is either a company defined as a “state-owned company” in the Public Finance Management Act 1 of 1999 or is owned by government or a municipality as contemplated in the Municipal Systems Act 32 of 2000. √√

x The company is owned by the government or a municipality and otherwise similar to a public company. √√

x A state-owned company enjoys financial autonomy because they are to depend on the government for initial investment. √√

x The Act imposes personal liability on directors who are knowingly part of the carrying on of the business in a reckless or fraudulent manner. √√

x The name of a state –owned company must end with the word “SOC”. √√

x State-owned company is compelled to have its financial statement audited. √√

x A state-owned company is compelled to attend an annual general meeting (AGM).

x A state-owned company has a separate legal personality and have limited liability. √√

x Shareholders have limited liability. √√

x When there are more than two shareholders (except in the case of a one-person company), the shareholders quorum at general meetings is three shareholders with voting rights unless the MOI provide otherwise. √√

x The person quorum for all meetings is the presence at the meeting of the holders of at least 25% of all the voting rights that are entitled to be exercised. The voting rights must be determined by MOI, i.e. the MOI may lower or higher the percentage. √√

x Shares of a state-owned company are freely transferable. √√

x State-owned companies are subject to disclosure and transparency requirements. √√

x Information in the state-owned company is available to shareholders. √√

x Each share has one general voting right unless the class of shares; preferences, rights and limitations in MOI provides otherwise. √√

11


x All distributions to shareholders require board approval and need to satisfy the solvency and liquidity tests. Distributors are unfortunately extremely widely defined and include dividends and share buybacks. Payments will be according to the class, preferences, rights and limitations of shares held. √√

x The new takeover regulations apply to every state-owned company, unless exempted by law. √√

x State-owned company is required to give 10 business days’ notice for shareholder meetings. √√

x A state-owned company is required to implement a reporting process for whistle-blowers. √√ max (10)

4.1.2. Advantages of a Non- profit Company

x The company has an independent legal personality, but director/directors will be liable for any loss, damage or costs sustained by the company if he / she was acting in the name of the company. √√

x The assets of the company are in the name of the organisation, not in its members. √√

x Non-profit companies continue to exist even if the membership changes. √√

x The assets and liabilities (debts) of the organisation are held separately from those of its members. √√

x May make a profit, but may not share any of the profits with its members – profits can only be used to carry out the work of the organisation. All of a non-profit company`s assets and income must be used to advance its stated objects, as set out in its MOI. √√

x The members exercise power in general meetings in the sense that they can appoint or remove directors, amend the MOI of the company and dispose of the NPO1s assets. √√

x Non-profit companies must prepare the financial statements at the end of the year and is not compelled to audit the financial statements. √√

x Non-profit companies are not compelled to attend the general annual meeting (AGM). √√

x A non-profit company is a legal person and must exist in its own right and is not dependent on who its members are, who works for the organization, etc. √√

Mark the first five 5x2= (10)

12


4.2 4.2.1. Advantages of starting a new business

x It is generally cheaper as there is no goodwill to pay for.√√ x You are not taking over the problems of an existing business.√√ x There is freedom to introduce new equipment, techniques, procedures and staff.√√ x You are able to have a greater impact on the character of the business.√√ x If capital is limited the business can start on a small scale.√√

Mark the first five (4x2=8)

4.2.2 Advantages of buying an existing business. x It is easier to raise finance if the business has a good history.√√ x Immediate cash flow as there are already established customers.√√ x Distribution, supply links are already established.√√ x The market is not being further divide by an extra business .√√ max (4)

4.3. Lease movable assets.

4.3.1. THREE disadvantages of leasing movable assets.

x Over a period of time the total of the lease payments may exceed the original purchase price of the leased items.√√

x The lessee is bound by the lease agreement or contract even when the business may not need the items any longer. .√√

x When the owner wants to sell the business, the lease will have to be taken over by the buyer of the business. .√√ (3x2=6)

4.3.2. Clauses that should be included in a lease contract.

x All important issues in a clear and understandable language.√√ x The name and contact details of all parties involved.√√ x Detailed description of what is being leased.√√ x The period of the lease.√√ x The monthly Amount payable.√√ x Any conditions, such as deposit, insurance or security.√√ x Details of how the installment will be calculated.√√ x Any additional costs, such as maintenance, repairs or royalties.√√ x The circumstances in which the lease can be cancelled.√√ x Any conditions for renewing the lease at the end of the contract period.√√ x The procedures and liability for the legal costs if a dispute arises.√√ x The procedure if the lessor or lessee becomes insolvent.√√ Mark the first six

6x2 (12)

13


4.4.

4.4.1. Definition of an action plan.

x a record of activities showing how those activities will be organised to achieve the goals set out in the business plan √√

x a document that identifies the activities and tasks required to get the work done and assigns responsibility √√ (1x2=2)

4.4.2. Advantages of using a Gantt chart to transform a business plan into an action plan.

x It is easy to prepare a Gantt chart √√ x The Gantt chart is easy to read and understand √√ x The events are shown in chronological order √√ x The time needed for each activity is shown visually √√ x Managers and team members can be immediately see which activity run

concurrently √√ x Team members can immediately see who is responsible for each activity √√ x Interrelated tasks can be seen at a glance √√ x More information can be included with the use of colour-coding √√ x If adjustments have to be made, you can see the effect on the other activities √√

Mark the first four 4x2 (8)

[60]

14


QUESTION 5 5.1.1 Differentiate between ethics and professionalism.

ETHICS PROFESSIONALISM

x Ethics is about standards of conduct that are acceptable to society.√√

x Ethics forms part of a code of conduct. √√

x Focuses on developing a moral compass that can be used in decision making. √√

x Ethics are moral principles that govern the behavior of a person and /or group. √√

x Ethics defines how individuals, professionals and businesses choose to interact with one another.. √√

Sub max(4)

x Professionalism is about knowledge and skills of the profession and using them for the good of the client and the good of society.√√

x Professionalism is applying a code of conduct set by a business or profession. √√

x Professionalism focus on upholding the reputation of the profession or business. √√

x Professionalism – is being skilled and competent in your chosen occupation and having a good attitude that communicates commitment, values, focus, and respect for others. √√

x Professionalism is the competent and skillful behavior expected of a professional person. √√

x Taking pride in your actions and never compromising standards. Being focused and committed to a certain standard of performance. √√ sub max (4)

Max (8) 5.1.2. Unethical business practice TWO reasons

x Sindani sells fake products at the same price as the originals√√ x Sindani is not the registered owner of the brand.√√ (2x2=4)

15


5.1.3. Advantages associated with operating your business ethically. x Ethical business ventures abide by all laws and look for opportunities to do the

right thing before taking decisions. √√ x Entrepreneurs must consider the effects of the enterprise on the community and

its employees. √√ x Fair remuneration should be paid to all employees because employees help to

create wealth for the business enterprise. √√ x Fair treatment influences employee morale positively and increases or creates

loyalty among employees. √√ x An enterprises that pay their taxes regularly avoids unnecessary penalty √√

(5x2=10) 5.2.

5.21. Stress

x Stress is our body`s response to difficult situations. Stress affects our bodies and our minds. √√

x Stressed people tend to be more emotional and less rational. √√ (1x2=2)

5.2.2. Business related crises.

x Natural disasters – earthquakes, wind and flooding damages. √√ x Theft or vandalism to vital equipment which stop production. √√ x Fire accidental or deliberate (an electrical fault), and arson. √√ x Power outages, like load shedding cause the loss of production and income√√

x Tight deadlines, falling behind schedules √√ x Loss of property, due to theft or natural disasters √√ x Illness and staff turnover √√

Mark the first five 5x2= (10)

5.3.

5.3.1 SEVEN steps that one can follow to solve a problem.

x Identify the problem clearly. One person co-ordinates the session. √√ x Establish the desired outcome. The co-ordinator focuses all other suggestions on

this main outcome. √√ x Analyse the problem to find its cause. The co-ordinator asks each team member for

input. √√ x Generate (brainstorm) alternative solutions by thinking creatively. One person

records ideas on a flip chart. √√ x Evaluate the alternatives and select the most suitable solution. Everyone

participates in this process. √√ x Implement the decision. Agree on who will do what to correct the problem. √√

16


x Follow up and evaluate the results. Set up a date and time to evaluate whether the solution has worked, and if not what alternatives to implement √√

Mark the steps in any order 5.3.2. Routine thinking and lateral thinking

max (4) 5.4. 5.4.1. Assessor –Developer :The assessor developer will develop the new product /Idea

√ by breaking the new idea into manageable chunks √, for example processes or procedures that need to be followed in sequence when developing a new recipe for a chocolate√ (3

5.4.2. Explorer promoter: The explorer promoter will help √ the assessor – developer in that he /she will be the outgoing person who will sell the new product idea √ to the rest of the team. √ (3)

5.5. Impact of sexual harassment at the workplace x Affects business negatively – lowers morale and motivation, lowers

productivity and increase in worker turnover √√ x The affected party is usually afraid to report it because of victimization. √√

(1x2=2)

(60)

Routine thinking Lateral thinking Routine thinking is the way of thinking where the belief is that things are as the same as they have always been√ and that the future will therefore be the same too. √ Sub max (2)

Lateral thinking involves ideas that may not be apparent by using only routine step-by-step logic √ and the result is solutions that have not been thought of before. √ Sub max (2)

17


QUESTION 6: 6.1. 1. Memorandum of Incorporation

x MoI serves as the constitution of a company. √√

x MoI sets out the rights, responsibilities And duties of shareholders and directors.it includes detail about incorporators, number of directors and share capital. √√

(1x2=2)

6.1.2. A company’s prospectus.

x A written invitation to the general public to buy shares in the public company √√ x A document that gives information about an organization or outlines a proposal for

something √√ x Any other acceptable definition for a prospectus (1X2=2)

6.1.3 Items that should be included in a company’s prospectus.

x Company overview, including vision, mission and goals √√ x Product or service portfolio √√ x Market analysis and strategy √√ x Management team √√ x Risk and potential of the company √√ x Available financial and share information √√ x any other acceptable answer relating to the content of a prospectus

Mark the first four

2x4 (8)

6.2.1 SCAMPER

S= Substitute √√

C= Combine √√

A= Adapt √√

M=Magnify √√

P= Put to other uses √√

E= Eliminate (Minify) √√

R= Rearrange (reverse) √√ (14)

18


6.3. 6.3.1. Advantages of outsourcing

x Allows the business to focus on its core functions. When the business expands, so will all the operations. √√

x Saves on costs and improves efficiency √√ x Can reduce overheads, e.g. office needs more space, business outsource instead

of moving to another building. √√ x Regains control over an operation, e.g. where information technology section has

become too expensive for the service it provides to the business. √√ x Provides staff flexibility during peak times. √√ x Provides continuity and reduces risks. √√ x Develops internal staff, e.g. internal staff work with the outsourced experts on a

project to learn new skills. √√ Mark the first four 4x2= (8)

6.4. Steps in designing a presentation either orally or in writing.

x Analyse the problem, prepare a written problem statement to clarify the task. √√

x Anticipate the audience and issues √√ x Prepare a work plan, start early and allow enough time for brainstorming and

preliminary research. √√ x Do the research to gather data √√ x Organise, analyse, interpret and illustrate the data. √√ x Put the first draft together, and print and read it 24 hours later. √√ x Revise, proofread and evaluate. √√

Max (10)

6.5 Aspects which can help the presenter to respond more effectively to questions from the audience:

x Listen: The presenter should listen to all parts of the question. Writing down the questions will also assist to remember all the parts that need responding to. √√

x Understand: The presenter should ask the person asking the question to clarify √√ x If he /she is not clear on what the question is. Repeating the question back at the

person often helps √√ x Communicate and involve: Be positive and enthusiastic when responding. Keep

answers brief and focused. The presenter should also not allow a two way discussion between him/herself and the person asking the question. To prevent this, repeat the question to the whole audience before attempting to answer it. √√

x Respond: make eye contact with the whole audience while answering a question. But check with the person who asked the question whether the answer was sufficient. √√

x Invite follow up questions: If the presenter runs out of time he/she can invite the audience to continue discussion the issue via email or even via telephone. √√

19


Mark the first four 4x2=(8)

6.6. Advantages of a business that operates in a formal sector

x Activities that take place in the formal sector are regulated √√ x Products supplied by the formal sector are legal √√ x People employed in the formal sector contribute towards the employment

insurance fund √√ x Government is able to generate in the form of tax from the sector √√ x Products bought from the formal sector can be returned if is faulty √√ x The formal sector can make use of services offered by informal sector because

services offered by the informal sector are often cheaper than services offered by the formal sector. √√

Mark the first four 4x2=(8)

(60)

20


SECTION C ANSWER ANY TWO QUESTIONS IN THIS SECTION. QUESTION 7 7.1 INTRODUCTION:

� Power can be described as a measurement of an entity’s ability to control its environment, including the behaviour of other entities. √

� A business forms relationships within its environment and markets√ � The power it has on the environment determines the status it holds within its

industry √ � Any other relevant introduction related to lobbying, power relations/relationships

and networking (Any 2x1) (2)

7.2 LOBBYING

Discussion of lobbying

� Lobbying is trying to influence decisions made by officials in the government or members of regulatory agencies. √√

� Lobbying is done by groups of people who have similar motives, beliefs, or commercial positions √√

� Businesses also lobby their regulators or supervisory body and try to influence pricing, policies, regulations and other decisions made by the regulator √√ Sub max 4

Practical ways to lobby political decision makers

� Submit brief presentation at parliamentary portfolio committee hearing for the policy √√

� Make oral presentations at parliamentary portfolio committee hearing √√ � Conduct research and writing reports that support the proposal and submissions

made to parliament √√ � Monitor parliamentary debates and White paper that outline policy proposal from

government √√ � Sign petition in support of a proposal √√ � Write letters to individual politicians and cabinet ministers √√

Sub max4 Max (8)

7.3 POWER RELATIONS

Explanation of power relations

� Businesses can gain some control of the macro environment by establishing power relationships with influential people. √√

21


� This can be done through strategic alliance agreements: These are agreements between two or more firms to engage in an activity on a shared basis √√

� Strategic alliances are often signed for a limited period √√

� Businesses must know what they want to gain from the alliance and must ensure that the partners have similar objectives √√

� Businesses can persuade large investors to benefit from the relationship in that it can gain credit easily and get better deals √√ (sub max 4)

Strategies which can be used to balance power in power relations

� Businesses can invite powerful and influential people to sit on their board of directors in order to get advice of the person √√

� Company representatives must be selected carefully considering their personality, communication style and intelligence. √√

� In a school the principal may include teacher components and learners representatives in making decisions about the day to day running of the school to avoid conflicts of interests √√

� In a business the marketing and production departments may work together to determine the products √√

� Employers and trade unions use bargaining councils to meet and negotiate long-term agreements beneficial to both business owners and workers √√

� Important stakeholders can be included as directors of the business and therefore have a say in management and a vote in decision making. √√

� Employers and employees can resolve their disputes with the help of an impartial third party like CCMA √√

� Consumers and suppliers can use Consumer Tribunals to resolve their differences. √√

� Any other relevant answer related to power relations. (sub max 4)

Max 8

7.4. Networking

Explanation of networking.

x Tool used to connect/reach as many people as possible and to make every connection count towards building and sustaining business relationships √√

x Interacting with others to exchange ideas and information, to develop professional contacts and to give and get advice from other business people √√

22


x Any other acceptable definition for networking (sub max 2)

Advantages of networking

x Finding new customers/generating more business √√ x Generate new business opportunities √√ x Receive help/advice/support from one another on a regular basis √√ x Sharing of information about business √√ x Creating new uses for products by using advice from customers √√ x Influence regulators/government/trade unions √√ x Any other acceptable benefit of networking for the business

7.5. Hedging against inflation

Description

� Hedging means to assess a potential risk and then make a plant to avoid that risk √√

� Insurance policy is a typical of hedging √√ (1x2=2)

Reasons

� A business must take steps in advance to protect itself from ever-increasing price of resources and inputs √√

� If the business does not hedge against inflation, its costs will soon be greater than the value of its goods, this will lead to business failure √√ (1x2=2)

Practical ways

� Keep budgets and update them and ensure that provision is made in budgets for the increase in costs of input. √√

� Increase the prices charged to customers to recover increases √√ � Change production systems to make goods cheaper √√ � Become more efficient √√ � Identify the most price-sensitive resources and explore alternatives √√ (2x2=4)

Max 8

7.6 CONCLUSION

� Power relations exist in all relationships throughout the society√√

� When two businesses are negotiating a transaction one of them may be in a stronger position than the other. √√

� Any other relevant conclusion related to power relations and lobbying.

(Any 1x2=2)

23


BREAKDOWN OF MARK ALLOCATION

QUESTION 8 8.1 INTRODUCTION

x Franchising is the right granted by a franchiser to a franchisee to use a special business’s name and brands, and sell its products/services in an agreed area according to franchising agreement √

x It is a major contributor to the economy in South Africa √ x Not all entrepreneurs are able to start their own businesses √ x Franchises offer entrepreneurial and managerial assistance √ (Any 2x1)

8.2.1 Advantages of a franchise agreement for a franchisee x The user of a well-known trade name and trademark √√ x Added benefits such as group advertising campaigns and greater discount because

Group buying. √√ x Funding is more easily granted to franchises than to new businesses by financial

institutions √√ x The owner gets profits of the business √√ x The franchisee learns how to keep proper financial records and sometimes receives

valuable advice from the experts √√ x Franchising offers opportunities to everyone. Franchisees do not have to be

specialists in the field of the business √√ (Any 3x2) (6)

DETAILS MAXIMUM TOTAL

Introduction 2 32

Lobbying 08 Power relations 08 Networking 08 Hedging against inflation 08 Conclusion 2

INSIGHT Layout 2 Analysis 2 Synthesis 2 Originality 2 TOTAL 40

8.2 CONTENT/ BODY

24


8.2.2. Disadvantages for the franchisee

x Initial costs are usually very high which makes the franchise very expensive √√ x Franchising does not suit all personality types – entrepreneurs with their own flair

and ideas will find it difficult to operate within the limits of the franchise contract √√ x Franchisees are not always provided with the promised on-going support and

assistance √√ x Franchisees forfeit profit in the form of royalties √√ x Business operations are restricted , for example only specific products may be sold

in specific areas √√ (Any 3x2) (6) 8.2.3 Advantages for the franchisor

x Rapid expansion of the business √√ x Franchisees provide start-up capital √√ x Assume responsibility for the running of the business √√ x Franchisees are highly motivated, committed and therefore takes responsibility √√ x The success of the business, in turn, improves the image of the franchisor √√ x A positive/popular image leads to increased customer satisfaction √√ x Extra profits for the franchisor √√ x The franchisee employs the staff, not the franchisor and does not have to deal with

the staff problems √√ x Initial fee by franchisee provides the franchisor with a large sum of capital

immediately √√ (Any 3x2) (6)

8.4 Disadvantages for the franchisor

x Problems can cause unpleasantness between the franchisor and the franchisee √√ x The franchisor has an obligation to train franchisees and pay high costs for trainers

√√ x In order to protect her/his income and reputation, he/she must exercise tight

financial control √√ x Wide marketing to get national exposure costs a lot of money √√ x To set up and run an effective head office involves high operating costs √√ x Income of a franchisor is limited to a fixed amount royalties √√ (Any 3x2) (6)

8.5. The franchising contract

x A franchise agreement is a legal document and deals with the following aspects: √ x Stipulates the specific trade area for franchisee √ x Initial fee and royalties payable to franchisor √ x Pricing policy to be used √ x Specification of products/services √ (3x1) (3)

8.6. OBLIGATION OF THE FRANCHISOR: √√

x Initial training of the franchisee √√ x Training of personnel √√

25


x Trade period in years √√ x Option to lengthen the franchise grant period √√ x Termination clause - usually possible after five years √√ x Form of ownership to be stipulated e.g. sole trader/cc √√ (Any 3x2) (6)

CONCLUSION x A franchise enables prospective business persons to start their own businesses, ,

but sell the product of a well-known business √ x Market research for the products for sale was mostly done and research costs are

very low √ x Examples of franchises are: MacDonalds and Wimpy. √ (Any 2x1) (2)

(40) Mark break-down

Mark Maximum Introduction 2x1

32

Advantages of a franchise agreement for a franchisee

3x2=6

Disadvantages for the franchisee 3x2=6 Advantages for the franchisor 3x2=6 Disadvantages for the franchisor 3x2=6 The franchising contract 3x1=3 Obligation of the franchisor: 3x2=6 Conclusion 1x2=2 L 2 A 2 S 2 O 2 Total 40

26


QUESTION 9

9.1 INTRODUCTION:

x Change should be a process that involves communicating with employees and getting them to buy into the need for change. √

x Change is stressful and different for everyone √

x Each employee will respond differently to change and therefore each employee must be managed individually √

x Any other relevant answer related to theories of change and why people resist change (Any 2x1) (2)

9.2 DIFFERENT KINDS OF CHANGE

x Change in technology: √√ x businesses are faced with a challenge of changes in technology √√ x To be competitive businesses must adapt to the new systems of production as

machinery may turn to be out-dated and of no use. √√ x Changes in the country’s economy: √√ businesses also need to adjust their prices

now and then according to the inflation rates. √√ x Some products end up being too expensive and their consumption is affected as

consumer demand decreases √√ x Change in legislation: √√ The government is also making changes of the legislation.

lf the country, for example when establishing a business in our country, you are no longer allowed to start a close corporation as a form of ownership, but those that are already established will continue operating. √√

x The government has also introduced e-tolls in Gauteng which is also a change to those affected as they have to incur costs they never thought off √√

x Any other relevant answer related to kinds of change

Max (8)

9.3. REASONS WHY PEOPLE RESIST CHANGE x Loss of security: √√ workers feel secure with what they know and new technology

might frighten them √√ x Fear of economic loss: √√ workers may feel that the change may lead to

retrenchment √√ x Loss of power and control: √√ some people may be afraid to lose their power and

control √√ x Reluctance to change old habits: √√ people tend to do things the same way√√ x Awareness of weakness in the proposed change: People are afraid of change

because they fear change might pose a challenge √√

27


x Peer pressure √√ x Timing and scope of change: √√ change should happen when people are receptive

and well prepared√√ x Misunderstanding: √√ workers may not understand the need for change √√

Max (10) 9.4 STRATEGIES TO COPE WITH CHANGE

x Good communication √√ x Concern for interpersonal relationship √√ x Sound decision making processes √√ x Acknowledging that change is stressful √√

Max (6) 9.5 THEORIES OF CHANGE MANAGEMENT

9.5.1 BUSINESS PROCESS RE-ENGINEERING

This theory argues that business processes need to be improved in order to deal effectively with change, even if individuals are motivated and prepared to work hard and deal with change. √√

x Business process engineering is the concept used to describe the change of processes in the business. √√

x The theory proposes that re-engineering the business processes is the key to changing how people work√√

x A small change can have dramatic effects on cash flow, service delivery and customer satisfaction. √√ Sub-Mark (4)

9.5.2. TOTAL QUALITY MANAGEMENT x The aim of this change management theory is to have long- term success of

the business through customer satisfaction √√ x In a TQM effort, the management and employees of a business work

together to improve processes, products, services and the culture that they work in. √√

x The theory is that all business processes are done right the first time, it will minimise defects and waste. √√ Sub-Mark (4)

9.5.3. KAIZEN MODEL √√ x This is a Japanese model which means to become good through change √√ x It is based on the following elements: x Quality groups meet and discuss levels of quality in their division√√ x Strong morale among employees is an important principle√√ x Teamwork is necessary √√ x Personal discipline of each employee ensures that the team will stay strong x Suggestions for improvement from all employees √√

Sub-Mark (4)

28


9.5.4. JOHN KOTTER’S CHANGE MODEL √√

x John Kotter identified eight steps that need to be taken in order to manage change successfully √√

x Establish a sense of urgency among employees to deal with the change√√ x Management and employees must work together √√ x Create a clear vision for the business √√ x Communicate and explain the vision to all employees √√ x Make it possible for all employees to respond to the vision √√ x Plan and create short term goals and successes √√ x Combine all improvement and produce more successes √√

Sub-Mark (4) 9.6 CONCLUSION

x It is important for management and employees to adapt to change √√ 1 x 2 (2)

BREAKDOWN OF MARK ALLOCATION

DETAILS SUBTOTAL TOTAL Introduction 2 Different kinds of change 8

32

Reasons why people resist change 8

Strategies to cope with change 6 Theories of change management Any Two Theories (4X2)(8

8

Conclusion 2 INSIGHT

L-Layout 2 A-Analysis 2 S-Synthesis 2 O-Originality 2

TOTAL 40

29


QUESTION 10

10.1 Introduction

x Since the establishment of a Democratic Government in 1994, the protection of the

rights of workers in the workplace was a key issue that needed to be addressed. √

x The rights of workers and trade unions were protected in the Constitution of South

Africa. √

x Today, most employees belong to a Trade Union. √

x A trade union is an organisation established by workers. √ (any 2 x 1 = 2)

10.2 Functions of trade unions

x Maintenance and the promotion of the interests of its members. √√

x Improve the material benefits of members. √√

x Negotiating with employers on behalf of its members. √√

x Bargain for wage increases. √√

x Instituting and improving pension schemes. √√

x Influencing management decisions that are of benefit to workers. √√

x Obtaining medical aid benefits to improve the health of workers. √√

x Negotiating for better working conditions inclusive of rest periods, working with tools

and safety in the workplace. √√

x Ensure that the length of the working period (hours) is favorable to employees. √√

x Negotiate for favorable rates of pay including overtime, annual leave and sick leave

for workers. √√

x Ensure that racism and sexism is not practiced in the workplace. √√

x To express the views and aspirations of the employees through workplace forums.

√√

x Ensure that democratic principles are applied in the workplace. √√

x Monitor the enforcement of legislation and collective bargaining agreements. √√

x To resist the retrenchment of employees and strive for full employment. √√

x To resolve grievances and disputes in the workplace. √√

x To promote, support and unite trade unions. √√

x To organise and unite the employee workforce of the various industry into one

strong body. √√ (any 10 x 2 = 20)

30


10.3. Analysis of Current Role of Trade Unions

x Trade unions have a strong influence on the Government’s economic and social

policies. √√

x Trade unions have a decisive influence on the political issues relating to the

country. √√

x Trade unions always bring key issues to the notice of government such as

unemployment, job creation, poverty, HIV/Aids, etc. √√

x Trade unions and government have also debated the issue of privatisation and

trade barriers. √√

x Trade unions operate within the framework of the Labour Relations Act which

prescribes procedures regarding registration of trade unions, collective bargaining

agreements, establishment of the Commission for Conciliation, Mediation and

Arbitration, Resolution of Labour Disputes and Workplace Forums. √√

x Trade unions lobby Government on petrol prices and food prices. √√

Any other relevant answer relating to its role in the country.

(6 x 2 = 12)

10.4. Critique

x I agree with the legislation. √√

x During strikes, some members commit unlawful deeds and damage innocent

peoples’ property. This gives the trade unions a bad reputation. √√

x Members of the public are not sympathetic to the trade unions and their causes. √√

(any 2 x 2 = 4)

OR

x I do not agree with the legislation. √√

x This legislation will render trade unions powerless as a strike is a method to be

used to convey a serious message to all. If strikes are regulated, it will mean that it

will be ineffectual. √√ (any 2 x 2 = 4)

10.5 Conclusion

x From the above discussion, it is clear that employees benefit tremendously by

belonging to trade unions. √√

31


x Trade unions are primarily established to protect the interests of workers and to

improve their remuneration and working conditions. √√

(any 2 x 1 = 2)

Mark break-down

Mark Maximum Introduction 2x1

32

Functions of trade unions 10x2=20 Analysis of Current Role of Trade Unions 12 Critique 4 Conclusion 1x2=2 L 2 A 2 S 2 O 2 Total 40

june 2015 grade 11 - best...

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