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BUSINESS STUDIES P2

GRADE : 10

TASK : JUNE EXAMINATION

YEAR : 2024

MARKS : 100

MARKING GUIDELINES

This question paper consists of 22 pages.

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NOTES TO MARKERS

PREAMBLE
The notes to markers are provided for quality assurance purposes to ensure the
following:
(a) Fairness, consistency, and reliability in the standard of marking
(b) Facilitate the moderation of candidates' scripts at the different levels.
(c) Streamline the marking process considering the broad spectrum of
markers across the regions.
(d) Implement appropriate measures in the teaching, learning and
assessment of the subject at schools/institutions of learning.

1. For marking and moderation purposes, the following colours are

recommended:
Marker: Red
Departmental Head: Black
Teacher Moderator: Green
Provincial Moderator: Purple
2. Candidates' responses must be in full sentences for SECTIONS B
and C. However, this would depend on the nature of the question.
3. A comprehensive marking guideline has been provided but this is by
no means exhaustive. Due consideration should be given to an
answer that is correct but:
• Uses a different expression from that which appears in the marking
guideline.
• Comes from another credible source.
• Original
• A different approach is used.
NOTE: There is only ONE correct answer in SECTION

4. Take note of other responses provided by candidates, that are

relevant within the context of a particular question and allocate marks
accordingly. (In cases where the answer is unclear or indicates some
understanding, part-marks should be awarded, for example, one
mark instead of the maximum of two marks.)
5. The word 'Submax' is used to facilitate the allocation of marks within
a question or sub-question.
6. The purpose of circling marks (guided by 'max' in the breakdown of
marks) on the right-hand side is to ensure consistency and
accuracy in the marking of scripts as well as for calculation and
moderation purposes.
7. Subtotals to questions must be written in the right-hand margin.
Circle the

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subtotals as indicated by the allocation of marks. This must be
guided by 'max' in the marking guidelines. Only the total for each
question should appear in the left-hand margin next to the
appropriate question number.
8. In an indirect question, the theory as well as the response must be
relevant and related to the question.
9. Correct numbering of answers to questions or sub questions is
recommended in SECTIONS A and B. However, if the numbering is
incorrect, follow the sequence of the candidate's responses.
Candidates will be penalised if the latter is not clear.
10. No additional credit must be given for repetition of facts. Indicate with
an
'R'.
NOTE: 1. The above could apply to 'analyse' as well.
2. Note the placing of the tick (√) in the allocation of marks.

12. The allocation of marks must be informed by the nature of the

question, cognitive verb used, mark allocation in the
marking guideline and the context of each question.
Cognitive verbs, such as:
12.1 Advise, name, state, outline, motivate, recommend,
suggest, (list not exhaustive) do not usually require much
depth in candidates' responses. Therefore, the
mark allocation for each statement/answer
appears at the end.
12.2 Define, describe, explain, discuss, elaborate, distinguish,
differentiate, compare, tabulate, analyse, evaluate,
critically evaluate (list not exhaustive) require a greater
depth of understanding, application, and reasoning.
Therefore, the marks must be allocated more objectively
to ensure that assessment is conducted according to
established norms so that uniformity, consistency, and
fairness are achieved.
13. Mark only the FIRST answer where candidates offer more than one
answer for SECTION B and C questions that require one answer.

14. SECTION B

14.1 If for example, FIVE facts are required, mark the candidate's FIRST FIVE
responses, and ignore the rest of the responses. Indicate by drawing a line
across the unmarked portion.

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

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2. The above also applies to responses in SECTION C. (where
applicable)
14.2 If two facts are written in one sentence, award the candidate FULL credit.
Point 14.1 above still applies.
14.3 If candidates are required to provide their own examples/views,
brainstorm this at your school to finalise alternative answers.
14.4 Use of the cognitive verbs and allocation of marks:
14.4.1 If the number of facts are specified, questions that require candidates to
'describe/discuss/explain' may be marked as follows:
• Fact 2 marks (or as indicated in the marking guidelines)
• Explanation 1 mark (two marks will be allocated in Section C)
The 'fact' and 'explanation' are given separately in the marking guideline to
facilitate mark allocation.
14.4.2 If the number of facts required is not specified, the allocation of marks
must be informed by the nature of the question and the maximum mark allocated
in the marking guideline.
14.5 ONE mark may be awarded for answers that are easy to recall,
requires one-word answers or is quoted directly from a scenario/case
study. This applies to SECTIONS B and C in particular (where applicable).

15. SECTION C

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

Introduction
Maximum:
Content
32
Conclusion
Insight 8
TOTAL 40

15.2 Insight consists of the following components:

Layout/Structure Is there an INTRODUCTION, PARAGRAPHS, and 2
CONCLUSION?
Analysis and Is the candidate able to break down the question into 2
interpretation headings/subheadings/interpret it correctly to show an
understanding of what is being asked?
Marks to be allocated using this guide:
All headings addressed: 1 (One 'A')
Interpretation (16 to 32 marks): 1 (One 'A')
Synthesis Are there relevant decisions/facts/responses made 2
based on the questions?

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Option 1: Only relevant facts: 2 marks (No '-S')
Where a candidate answers 50% or more
(Two to Four sub-questions) of the
question with only relevant facts; no '-S'
appears in the left margin. Award the
maximum of TWO (2) marks for synthesis.
Option 2: Some relevant facts: 1 mark (One '-S')
Where a candidate answers less than 50%
(only one sub-question) of the question
with only OR some relevant facts; one '-S'
appears in the left margin. Award a
maximum of ONE (1) mark for synthesis.
Option 3: Some relevant facts: 1 mark (One '-S')
Where a candidate answers (FOUR
subquestions), but one/two/three
subquestions with no relevant facts; one
'-S' appears in the left margin. Award a
maximum of ONE (1) mark for synthesis.

Option 4: No relevant facts: 0 mark (Two '-S')

Where a candidate answers less than 50%
(only one sub-question) of the questions
with no relevant facts; two '-S' appears in
the left margin. Award a ZERO-mark
synthesis.
Originality Is there evidence of one or two examples, not older 2
than two (2) years that are based on recent information,
current trends, and developments?
TOTAL FOR INSIGHT: TOTAL
MARKS FOR FACTS: TOTAL
MARKS FOR ESSAY (8 + 32): 8
32
40

NOTE:
1. No marks will be awarded for contents repeated from the
introduction and conclusion.

2. The candidate forfeits marks for layout if the words.

INTRODUCTION and CONCLUSION are not stated.

3. No marks will be awarded for layout, if the headings,

INTRODUCTION and CONCLUSION are not supported by an explanation.

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15.3 Indicate insight in the left-hand margin with a symbol e.g. ('L, A, -S and/or
O').
15.4 The breakdown of marks is indicated at the end of the suggested answer/
marking guideline to each question.
15.5 Mark all relevant facts until the SUBMAX/MAX mark in a subsection has
been attained. Write SUBMAX/MAX after maximum marks have been
obtained, but continue reading for originality “O”.
15.6 At the end of each essay indicate the allocation of marks for facts and
marks for insight as follows: (L – Layout, A – Analysis, S – Synthesis, O –
Originality) as in the table below.

CONTENT MARKS
Facts 32 (max.)
L 2
A 2
S 2
O 2
TOTAL 40

15.7 When awarding marks for facts, take note of the sub maxima indicated,
especially if candidates do not make use of the same subheadings.
Remember, headings and subheadings are encouraged and contribute to
insight (structuring/logical flow/sequencing) and indicate clarity of thought.
(See MARK BREAKDOWN at the end of each
question.)
15.8 If the candidate identifies/interprets the question INCORRECTLY, then
he/she may still obtain marks for layout.
15.9 If a different approach is used by candidates, ensure that the answers are
assessed according to the mark allocation/subheadings as indicated in the
marking guideline.
15.10
15.10.) Award TWO marks for complete sentences. Award ONE mark for
phrases, incomplete sentences, and vague answers.
15.10.2) With effect from November 2015, the TWO marks will not necessarily
appear at the end of each completed sentence. The ticks (√) will be separated
and indicated next to each fact, e.g. 'Product development is a growth strategy √,
where businesses aim to introduce new products into existing markets.'√
This will be informed by the nature and context of the question, as well as the
cognitive verb used.
15.11 With effect from November 2017, the maximum of TWO (2) marks for
facts shown as headings in the marking guidelines, will not necessarily apply
to each question. This would also depend on the nature of the question.

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SECTION A

QUESTION 1

1.1
1.1.1 B 
1.1.2 A 
1.1.3 B 
1.1.4 C 
1.1.5 A  (5x1) (10)

1.2
1.2.1. Public relation. 
1.2.2 Legal. 
1.2.3 Primary. 
1.2.4 Mission. 
1.2.5 Cash.  (5x2) (10)

TOTAL SECTION A: 20

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SECTION B
QUESTION 2 (BUSINESS ENVIRONMENTS)
2.1 Factors that should consider when choosing a form of ownership
• the start-up cost and the future capital
• the size and nature of the business
• tax implications
• how the business will be controlled and managed/management structure
• the risk involved
• how capital will be contributed
• how profits and losses will be shared
• who is responsible for any debts made by the business/liability
• the life span of the business/continuity
• the vulnerability of the business in terms of lawsuits/legal persons.  Max 4
2.2 Scenario on forms of ownership
TYPES OF MOTIVATIONS
COMPANIES
Nthabi 1. Non- profit company Nthabi used her money to start
 a company that end with INC
Lebo 2. Public company  Lebo decided to establish her
own company that ends with the
abbreviation LTD.
Sub max 4 Sub max 2

(6)
NOTE:
1. Do not award marks for motivation if forms of ownership is incorrect
2. Award marks for types of company even if motivation is wrong
2.2.2 Impact of a public company
Advantages of a public company
• The business has its own legal identity and can own assets/property. 
• Public companies enjoy the ability to raise funds through the sale of the
company’s stock to the public. 
• Managed by at least three competent highly skilled director. 
• Directors bring creative ideas which encourage innovation/high productivity.

• Shareholders can sell/transfer their shares freely. 
• Attracts small investors as shares can be transferred freely/ easily
• Strict regulatory requirements protect shareholders. 
• Easy to raise funds for growth through the sale of shares. 
• Additional shares can be raised by issuing more shares or debentures. 
• No limitation on the number of shareholders, so growth/ expansion is not
limited

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• Shareholders have a limited liability for the debt of the
company/Shareholders may only loose the amount which they invested. 
• The management of the company can improve since directors are
accountable to shareholders. 
• The public has access to the information, and this could motivate them to
buy shares from a company

Disadvantages of a public company

• Difficult and expensive to establish as the company is subjected to many
legal requirements
• Public companies are vulnerable to increased scrutiny from the government
and the public. 
• Must disclose all financial information which can be used by its
competitors
• Directors may not be motivated to work very hard because shareholders
decide on the directors' remuneration. 
• Directors may not have a direct interest in the company, which can hamper
growth and profit maximisation. 
• Directors' fees increase the company's expenses which reduces net profit. 
• Some shareholders may not exercise their voting rights resulting in choosing
the wrong person as a director
• A full report must be submitted to the major shareholders each year
• Large management structure can result in decision making taking time
• Large amount of funds are spent on financial audits. 
• Auditing of financial statements are compulsory. 
• They must prepare their financial reports in accordance with the Generally
Accepted Accounting Principles (GAAP). 
• Management may be open to legal challenges if their reports do not comply
with King Code III. 
• Public companies are subject to more disclosure and transparency
requirements. 
• Any other relevant answer related to impact of public company
Or
Impact of non-profit company
Advantages of a non-profit company
• Profits are used solely for the primary objective of the organisation. 
• They provide social services to various communities. 
• The company does not pay tax, so all earnings can be cycled back into the
organisation to improve it. 
• Donations made by donors are tax-deductible, therefore it motivates people
to donate to the organisation. 
• The liability of the members is limited
• An NPCs existence can last long after the founders leave the business. 
• Can receive grants grants/aid from the government. 
• Surplus of income is retained to further the goals of the business
• Must prepare the financial statements at the end of the year and is not
compelled to audit the financial statements. 

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

Disadvantages of a non-profit company

• Need professional assistance to set up this organisation
• Does not generate enough capital to cover their expenses. 
• Donations may not always be enough to finance the company’s expenses.

• Assets are not distributed to the members upon closing down. 
• Creating a non-profit company takes time/effort/money. 
• Obtaining grants can be a slow and tiring process.
• Incorporators cannot take along the assets accumulated by the NPC if they
decide to leave. 
• They are not allowed to pay bonuses to members. 
• They are compelled to prepare annual financial statements. 
• Any other relevant answer related to impact of NPC (4)

2.3 Advantages of a sole trader.

• It is easy and quick to form a sole trader as there is less capital needed. 
• The owner can take quick decisions as and when required and has full control.
• The owner can take steps to eliminate wastages of any kind.
• No legal process and requirements
• Can easily adapt to the needs of the client/customer
• The assets of the business belong to the owner personally
• A sole trader can close contracts and trade in his own name
• The owner takes all of the profits made by the business and are entitled the
ownership of assets. 
• There is personal encouragement and personal contact between the owner
and customers. 
• Sole traders are generally closer to their customers and offer a more
personalised approach and improved customer service. 
• Any other relevant answer related to advantages of a sole trader (4)

2.4 Advise businesses on the disadvantages of a partnership.

• Partners might not all contribute equally. 
• There can be lack of capital and cash flow. 
• Partners might still find it difficult to raise capital as not all partners contribute
cash. 
• Partners are jointly and severally liable for the actions of the other partners.
• Partnership lacks continuity, if one partner dies/retires, the remaining
partners need to draw up a new agreement. 
• Partnership is not a separate legal entity and therefore partners are liable for
the debts in their own capacity. 
• Different personalities and options of partners can lead to conflict it
disagreements. 

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• Each business partner is legally responsible for the joint liability of the
partnership.
• A partnership has unlimited liability which means that partners risk losing
their personal possessions. 
• Discussion between partners can slow down decision making, and they may
disagree on important business decisions. 
• In large partnership, the partners may struggle to agree on business issues.

• Changes or transfer of ownership can be difficult and generally require a new
partnership to be established. 
• Loss in profits and stability of the business can occur if a partner
resigns/dies/loses interest in the business or is declared bankrupt. 
• Profits are divided between partners according to the partnership agreement
and not according to the income distributed. 
• Any other relevant answer related to disadvantages of a partnership.
Max 2
(20)

QUESTION 3 (BUSINESS ROLES)

3.1 THREE types of gambling
● Card games
● Casino
● National lottery
● Scratch cards
● Slot machines
● Horse betting
● Fafi / Mochina
● Unofficial lottery type scheme
● Pyramid Schemes
● Illegal gambling
● Money laundering
● Bingo halls
● Unlicensed casino’s
● Internet gambling, as it is sometimes linked to organised crime· animal fighting. 
● Unlicensed operations offering gambling to the public
● Any other relevant answer related to types of gambling (3)

NOTE: Mark the first THREE answers.

3.2 Outline the purpose of inclusivity in the workplace.

• Inclusivity enables businesses to make the best use of all human resources. 
• Promotes equal opportunity for every employee to obtain skills that will lead to
promotion and career path. 
• Promotes respect for each person and their contributions in the workplace. 

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• Promotes healthy/happy working environments, which in turn increase job
satisfaction and productivity. 
• Increase tolerance of each other’s ideas and beliefs. 
• Increase communication in the workplace so that business goals/objectives are
achieved. 
• Businesses are able to use a variety of talents and skills. 
• Inclusivity increases education and training resulting to a decrease in poverty. 
• Increases the number of middle-class people participating in the economy. 
• The goal of inclusivity is to ensure that the business implements fair labour
practices.
• It seeks to redress the inequalities of the past. 
• Ensures that workplaces are created where people of different races, genders
and religions can work together to the benefit of the business. 
• Ensure that their workforce is representatives of the demographics of the country.

• Try to ensure that the physical business setting makes provision for individuals
with disabilities. 
• Any other relevant answer related to purpose of inclusivity (4)

3.3 Meaning of strikes.

● A strike/labour dispute is a collective refusal of employees to work because of

an issue in the workplace, aimed at forcing the employer to give in to demands. 
● It is a collective action taken by a group of unhappy employees to accept their
demands. 
● Strikes may take form of a go slow, lock outs and sympathy strike. 
● It is a dispute between the employer and employees when they cannot agree on
wage increases/changes in working conditions, even after negotiations. 
● The trade union must give notice to the employer when planning a strike. 
● Any other relevant answer related to the meaning of strike. (4)

3.4 Scenario on socio-economic issues

3.4.1
Socio –economic issues Motivation
1. Crime  PT has lost lots of money as they have experienced
many robberies during the past months
Or
PT is forced to close their business early as the
employees and the customers do not feel safe.
Sub max 1
Sub max 2
(3)

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3.4.2 Initiatives that are undertaken by businesses to address crime.
• Offer employment. √√
• Get involved in the local community on sustainable projects with
community. √√
• Sponsor special sports programmes by providing finance (prize money)
for special community events. √√
• Adopt a school; by providing most of its needs. √√ (6)

(20)

QUESTION 4 (MISCELLENOUS TOPICS)

4.1 Meaning of a co-operative.

• A cooperative is a traditional way of a group of interested parties getting

together and sharing resources/infrastructures and costs to achieve a better
outcome. 
• A co-operative society is a voluntary association that is established with the
aim of service to its members.
• Any other relevant answer related to meaning of co-operative. (2)

4.2. Difference between profit and non-profit making companies.

Profit making Companies Non-Profit-making Companies

• The company is established for • The company is established for charity
only one aim and that is to make purposes or to promote social and
profit.  cultural activities
• A company incorporated for • A non-profit company is an
financial gain for its association incorporated not for
shareholders.  gain. 
• The Memorandum of • The Memorandum of Incorporation
Incorporation sets out who the defines the purpose and its
directors and shareholders are operations
as well as their rights, duties • The company have an independent
responsibilities.  legal entity, but the board of trustee
• It also sets out the number of is protected unless found negligent or
shares that the company is fraudulent. 
authorised to issue.  • Non-profit organisations are not
• Profit organisations are required to pay taxes on net income.
responsible for paying taxes 
based on their profit. 

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4.3 Characteristic of a partnership.

• There should be at least a minimum of two people in a partnership. 

• There are no legal requirements in starting a partnership except the drawing
up of a partnership agreement. 
• The partnership agreement becomes the basis of the association between
the partners. 
• Partners combine capital and may also borrow capital from financial
institutions. 
• Profit is shared according to the partnership agreement.
• Partners share responsibilities and they are all involved in decision making.
• Partners have unlimited liability and are jointly and severally liable for the
debts of the business.
• No legal requirements regarding the name of the business. 
• No legal formalities to start, only a written partnership agreement is required.

• Partnership has no legal personality and therefore has no continuity. 
• Partners share profits made and they are therefore motivated to work harder.

• The partnership does not pay income tax, only the partners in their personal
capacities. 
• Auditing of financial statements is optional. 
• Partners share responsibilities and they are all involved in decision making. 
• Diversity/Specialisation/Different skills of the partners can be used. 
• There is no specific suffix to be reflected in the name of the partnership
• Any other relevant answer related to the characteristics of a partnership. (4)
4.4 Scenario on HIV/AIDS
4.4.1 Quote TWO impact of HIV/AIDS on Zane Manufacturers
● Staff morale is low because they are worried about their health, which reduces
production.
● ZE is faced with increased costs of training replacement staff for absentee
workers. (2)

NOTE:
1. Mark the first two answers only
2. Do not award marks for responses that are not quoted from the scenario

4.4.2 Suggest other impact of HIV/AIDS on businesses.

● Loss of skilled staff due to HIV related illnesses. 
● Profits will be lower as production decreases. 
● High absenteeism because of medical appointments for doctor or clinic visits
resulting to a decrease in productivity. 
● Conflict can arise among staff if they discover that a worker is HIV positive. 

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● Businesses face high levels of non-attendance of employees who become ill or
request to attend funerals. 
● Businesses find it difficult to keep up production levels and to meet deadlines
because of poor staff morale. 
● Businesses face increased costs of finding/recruiting/training replacements. 
● The pool of available skilled workers is getting smaller due to the high rate of HIV
infection. 
● The costs of finding replacement employees and recruiting are high. 
● Business needs to invest money in programmes to educate the workers
regarding AIDS. 
● Decrease in the number of consumers cause a drop in the demand for goods and
services. 
● Costs such as insurance/retirement funds/health/safety are higher as a result of
HIV for the business. 
● Any other relevant answer related to the impact of HIV/AIDS (4)

NOTE: Do not award marks for responses quoted from the scenario

4.5 Discuss the negative impact of political disturbance on businesses.

● People in township/informal settlement areas may block roads preventing
employed people from going to work due to service delivery protests. 
● Scares off potential investors. 
● Businesses may be forced to close especially those located in townships. 
● May results in losses of production as employees stay absent from work during
political disturbances, therefore, businesses cannot operate at full capacity.
● Many businesses suffer losses as a result of damage to property. 
● Riots can result in increased unemployment if shopkeepers are forced to shut
down. 
● Any other relevant answer related to impact of political disturbance. (4)
(20)
TOTAL SECTION B: 40

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SECTION C
QUESTION 5 (BUSINESS VENTURES)

5.1 Introduction
• A private company is treated a separate legal entity that has to register as a
taxpayer. √
• The public company is designed for large -scale operations that require large
capital investment. √
• State owned companies are managed by the government for the benefit of the
citizen. √
• Any other relevant introduction related to differences between a personal liability
company and private company/ advantages of a private company/ disadvantages
of a public company /advantages of a state-owned company.
Any (2x1) (2)

5.2 Characteristics of a sole trader

• Owner can sell the business to anyone at any time. 
• There are no legal requirements regarding the name of the business
• It is easy to establish as there are no legal formalities in forming the business. 
• Sole traders are not compelled by law to audit financial statements
• The owner has a personal interest in the management and the services that is
rendered. 
• The owner has unlimited liability/The owner is personally liable for the debt of the
business. 
• A sole trader has limited company for expansion and lacks continuity of existence.

• The business has no legal personality and therefore has no continuity/Continuity
depends on the life and health of the owner. 
• The business dissolve when the owner dies. 
• The owner provides capital from his/her saving/borrow money from the bank. 
• The owner has a personal interest in the management and the services that is
delivered. 
• Profit is added to the rest of the owner’s taxable income. 
• There are no special requirements when the owners want to close the business.

• Any other relevant answer related to characteristics of a sole trader Max 10

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5.3 Differences between the private company and public company

PRIVATE COMPANY PUBLIC COMPANY

- May no offer shares to the - Trades its shares publicly on the
general public.  Johannesburg Securities Exchange. 
- Shares are not freely - Shares are freely transferable. 
transferable
- Minimum of one director.  - Minimum of three directors. 
- Name must end with - Name must end with Limited/Ltd. 
Proprietary Limited/(Pty) Ltd. 
- Annual financial statements - Annual financial statements need to be
need not be audited and audited and published. 
published. 
- Does not need to publish a - Have to register and publish a
prospectus as it cannot trade prospectus with the Companies and
its shares publicly.  Intellectual Property Commission/CIPC. 
- The company is not required to - Must raise a minimum subscription prior
raise the minimum to commencement of the company. 
subscription/ issue minimum
shares.  Sub max 6
Sub max 6
Max 12

5.4 Impact of private company on businesses

Advantages of a private company

• A company can continue to trade even if one shareholder dies/resigns. 
• Managed at least by one competent highly skilled director. 
• Information in a private company is only available to shareholders. 
• Not required to file annual financial statements with the commission. 
• The company has unlimited number of shareholders and its life span is
perpetual. 
• Shareholders can vote for/ appoint the most capable directors to manage
their company. 
• Own legal identity and shareholders have no direct legal implications/ limited
liability
• Large amount of capital can be raised since there is no limit on the number
of shareholders. 
• Even though shares are not freely transferable, large private companies can
raise considerable amount of capital
• It is possible to sell a private company as it is a legal entity in its own right. 
• The management of the company can improve since directors are
accountable to shareholders. 
• The company can access long term capital and therefore has good long
term growth opportunities. 
• The company is a separate legal person it can buy property in its own
name
• Liabilities of the shareholders are limited. 

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Disadvantages of a private company
• Difficult and expensive to establish a private company compared to Close
Corporations and Sole Proprietorship 
• Private companies are subject to many legal requirements and regulations
which can be onerous. 
• Large management structures can result in decision-making taking time. 
• The private company cannot be listed on the stock exchange, therefore, it
cannot sell shares to the public. 
• Directors may sometimes act in their own interest, not in the company's best
interest. 
• Annual financial statements must be reviewed by a qualified person, which
is an extra expense to the company. 
• Difficult and expensive to establish as the company is subjected to many
legal requirements. 
• Pays tax on the profits of the business and on declared dividends/Subject to
double taxation. 
• Financial statements must be reviewed by a qualified person, which is an
extra expense to the company. 
• Directors will be held personally responsible for debts if it can be proven that
that they committed fraud. 
• Some shareholders may not exercise their voting rights resulting in choosing
the wrong person as a director. 
• A meeting may not begin, or a matter may not be debated unless at least
three
• Any other answer related to the impact of a private company Max 16

5.5 Advantages of a state-owned company

• Shareholders have limited liability. 
• SOCs help eliminate economic exploitation and oppression. 
• Profits may be used to finance other state departments. 
• Offer essential services which may not be offered by the private sector.
• Wasteful duplication of services is eliminated. 
• Jobs are created for all skills levels. 
• Generates income to finance social programmes. 
• Prices are kept reasonable/Create sound competition with the private sector to
make services affordable to more citizens. 
• Planning can be coordinated through central control
• Provides a healthy competition to private sectors because of government
contributions. 
• Most of the government companies run on sound business lines as they have
their surpluses to run their projects. 
• State-owned company can be expanded by means of selling its shares to the
public. 
• A state-owned company has a separate legal personality. 
• Any other advantages of related to advantages of SOC MAX 10

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5.6 Conclusion
• A private company has the capacity to grow into a large business. √√
• A personal liability company is usually used for firms that provide
professional services such as attorneys/ accountants/engineers etc. √√
• Smaller public companies are not listed in the JSE as they sell their shares
privately √√
• It is important that state-owned companies are well managed and make a
profit. √√
• Any other relevant conclusion related to differences between a personal
liability company and private company/ advantages of a private company/
disadvantages of a public company / advantages of a state-owned
company. Any (1x2) (2)
[40]
Breakdown of mark allocation
Details Maximum Total

Introduction 2
Characteristics of sole trader 10
Difference between private and public
company 12 Max 32
Impact of private company 16
Advantages of state-owned company 10
Conclusion 2

Insight
Layout 2
Analysis 2
Synthesis 2
Originality 2
Originality, examples 40 marks

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QUESTION 6 (BUSINESS ROLES: SOCIO ECONOMIC ISSUES)
6.1 Introduction
• Businesses can grow and develop into successful enterprises if they take
socioeconomic issues in consideration. √
• Businesses who ignore socio-economic issues do not contribute towards a safe
environment. √
• The business is part of the community and any problems in the community
impacts on the business as well. √
• All socio-economic issues present both challenges and opportunities for
entrepreneurs. √
• Businesses need to identify relevant CSR programmes that are aimed at
addressing some of this issue. √
• A diverse workforce allows businesses to address inequality as a socio-economic
issue.
• Any other relevant introduction relating to meaning of strikes/ impact of strikes
and political disturbances on businesses/possible solutions to unemployment/
reasons why socio-economic issues pose a challenge to business (2x1) (2)
6.2 Meaning of socio-economic issues.
• Socio-economic issues are aspects that have a negative effect on the
individual, communities and businesses. 
• These issues are societal and economic factors in the macro environment. 
• Socio-economic challenges are issues that affect people and the economy in a
negative way. 
• They are problems that come from social/people and economic/money
circumstances. 
• Some of the socio-economic issues that South Africans face include inequality,
poverty, inclusivity, HIV/AIDS, gambling, counterfeiting, bootlegging, strikes,
political disturbances and crime. 
• Any other relevant answer related to meaning of socio-economic issues Max 6
6.3 Reasons why socio-economic factors poses a challenge to businesses.
• Socio-economic issues affect consumer spending due to poverty and
unemployment. 
• These issues place extra burdens and expenditure on businesses as they have
to develop policies/support systems/ informative programs to address them. 
• Businesses are expected to create as many job opportunities as possible to
assist government address these issues which places a financial burden on
them. 
• They must also educate employees on social issues and how to become
involved in the community to address these social issues. 
• Businesses may not be well supported by customers because of their limited
disposable income. 
• Absenteeism of employees affected by HIV/AIDS will result in a decrease in
productivity of a business. 
• Counterfeiting, bootlegging and crime may lead to loss of profit for businesses.


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• Businesses may feel pressurised to offer corporate social responsibility projects
in disadvantaged communities.  This in turn, could lead to increased business
costs and decreased profitability. 
• Any other relevant answer related to reasons why socio-economic factors poses
a challenge to businesses. Max 10

6.4 Discuss the impact of gambling and strikes on businesses.

6.4.1 impact of gambling

• Employees may not work overtime at short notice. 

• High rate of employee absenteeism. 
• Local businesses forced out of business. 
• Gambling hides criminal activities and can lead to workplace violence. 
• Compulsive gamblers cannot focus on work while preoccupied with gambling.

• Compulsive gambling puts a strain on relationships in the workplace. 
• Addicted employees could also steal to get money for gambling. 
• Reduces productivity as it encourages crime and corruption. 
• When gamblers lose their money, they have less to spend on goods and
services, which affects business negatively. 
• Decrease in savings leads to a decrease in future production. 
• Less buying power as people may lose their money on pyramid schemes,
casino gambling etc. 
• Individuals losing cash can display lower morale levels at work and this will
influence their work relationships and responsibilities. 
• The employees can suffer from depression and thereby not be able to focus on
their work tasks and responsibilities. 
• Any other relevant answer related to impact of gambling Sub max 10
6.4.2 Impact of strikes on businesses

• This could make the business to be unable to meet its contractual obligation
and the business losing contracts. 
• The cost of making up all the working hours is too high. 
• Strikes can be violent  because strikers intimidate those employees who do not
want to go on a strike
• Scares off  potential investors. 
• May results in losses of production as employees stay absent from work during
strikes. 
• Strike actions may lead to production losses and decline in sales. 
• Businesses may be forced to close down operations after strike actions. 
• May lead unhealthy working relationships  between the management and
workers. 
• May force businesses to retrench some of its skilled workers to recover from
losses. 
• Businesses may incur damages to their premises due to protests or protest
actions. 
• Any other relevant answer related to impact of gambling and strikes. Sub
max 10

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Max 20
6.5 Suggest the possible solutions to unemployment.
• Improvement of skills, better education and training. 
• The government should change the labour laws to encourage small businesses
to employ workers
• Businesses can provide skills development programmes through learnerships.

• Offer bursaries to the community to improve the level of education. 
• Businesses must create jobs for members of the community. 
• Provide entrepreneurial programmes that can promote self-employment. 
• Support existing small businesses to create more employment opportunities. 
• Any other relevant answer related to solution to unemployment MAX 10

6.6 Conclusion
• Businesses who develop strategies to deal with socio-economic issues
survive long enough to achieve their long term-term goals. √√
• Businesses should be aware of these issues and put strategies in place to
combat them.√√
• A diverse workforce contributes creative ideas and enables businesses to
stay ahead of its competitors. √√
• Any other relevant conclusion relating to meaning of strikes/ impact of
strikes and political disturbances on businesses/possible solutions to
unemployment/ reasons why socio-economic issues pose a challenge to
businesses. 1X2 (2)

Breakdown of mark allocation

Details Maximum Total

Introduction 2
Meaning of socio-economic issues 6
Reasons why socio-economic issues
poses a challenge to businesses. 10 Max 32
Impact of strikes and gambling on
businesses 20
Solution to unemployment 10
Conclusion 2

Insight
Layout 2
Analysis 2
Synthesis 2
Originality 2
Originality , examples 40 marks

TOTAL SECTION C: 40
GRAND TOTAL: 100

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