Business Std.

Gr 10 Controlled Test MG Grantley College Term 1/2024

BUSINESS STUDIES GRADE 10 CONTROLLED TEST 1 MARKING GUIDELINES

SECTION A: COMPULSORY
QUESTION 1
1.1.1 C√√
1.1.2 A√√
1.1.3 C√√
1.1.4 C√√
1.1.5 A√√ (5x2) (10)

1.2.1 G√√
1.2.2 F√√
1.2.3 B√√
1.2.4 C√√
1.2.5 A√√ (5x2) (10)
TOTAL SECTION A: 20
SECTION B:
QUESTION 2
2.1 Examples of intermediaries:
 Agents√
 Wholesalers√
 Retailers√
 Brokers√
NOTE: Mark the first two (2)

2.2.1 physical resources√√

2.2.2 human resources√√ (2x2) (4)

2.3 The meaning of threats:

 Threats are any factors in the external environment√ that will stand in the way or is already
standing in the way of businesses achieving their goals. √
 Businesses have a challenge of constantly identifying threats in the external environment√
and devising strategies to turn them into opportunities otherwise they will not be
successful.√
 Any other relevant answer related to the meaning of threats. (2)

2.4.1 TWO opportunities and TWO threats

OPPORTUNITIES THREATS
1. A nearby local school wants to buy 1. The business is located in a high crime
groceries in bulk for their feeding area. √
scheme√
2. A new complex, housing middle 2. Another grocery store has been
income earners in the area, has established and some of GT’s customers
recently been completed√ are buying from it.√
(4)

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Business Std. Gr 10 Controlled Test MG Grantley College Term 1/2024
2.5 Non-governmental organisations (NGOs), as part of civil society:
 Non-governmental organisations (NGOs) are non-profit organisations that operate
separately√ from the government. √
 They are established to fulfil important needs in the community√ by addressing some socio-
economic issues.√
 They are part of the market environment because they supply consumer goods and
services√ and they are concerned about the welfare of others. √
 Any other relevant answer related to Non-governmental organisations. (4)

2.6 Reasons why the macro environment poses challenges to businesses:

 Businesses have no control over the macro environment√√.
 This environment is always changing and therefore leads to challenges for businesses. √√
 A change in one of the environments in the macro environment can affect any of the other
environments, which will then impact on businesses. √√
 Any other relevant answer related to reasons why the macro environment poses challenges
to businesses. (4)
[20]
QUESTION 3
3.1 TWO methods of carrying out public relations:
 Media√
 Direct contact√
 Brochures√
 Exhibitions
 Social responsibility√
 Transit advertising√
 Use of the telephone√
NOTE: mark the first 2 responses (2)
3.2 Differences between cash payments and credit payments:
Cash payments Credit payments
 Cash payment refers to all  Credit payment refers to all
payments made by cash√ for payments√ on a future date. √
business purchases  Credit payments results in the
immediately√ creation√ of assets/liabilities√
 Cash payments have an  The credit payer can pay more for
immediate effect on the goods√ because of the interest
cashflow√ of the business. √ added onto credit payments. √
 Cash payments can qualify√ for  Any other relevant answer related
cash discounts. √ to credit payments.
 Any other relevant answer
related to cash payments

Sub max: 2 Sub max: 2

(4)

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Business Std. Gr 10 Controlled Test MG Grantley College Term 1/2024
3.3.1
SOURCES OF FINANCING MOTIVATION
1. Grant √√ As a small developing business FE qualified for
funding from the government√
2. Angel funding √√ The business also obtained funding from a wealthy
investor who was willing to invest in a high-risk
business√
(6)
3.3.2 The advantages of the National Credit Act:
 Lowers bad debts√ resulting in better cash flow. √
 Protects business√ against non-paying consumers. √
 Increases cash sales√ as credit can only be granted to qualifying customers. √
 Prevents reckless lending√ by financial institutions. √
 Ensures that businesses settle their debts on time√ so that they can obtain good credit
scores. √
 Ensures that credit process√ is transparent, for example, both businesses and customers
know their responsibilities√
 Any other relevant answer related to the advantages of the National Credit Act. (4)

3.4 The importance of stock control:

 Enables businesses to determine the amount/value of stock. √√
 Businesses can check the cost and selling price of products. √√
 Ensures that there is enough stock to meet the normal demand of customers. √√
 Keeps the correct levels of stock on hand. √√
 Records the cost prices and selling prices of stock. √√
 Identifies theft in the business when the physical stock count is compared with the
electronic stock control system. √√
 Any other relevant answer related to the importance of stock control. (4)
[20]

QUESTION 4: MISCELLANEOUS TOPICS

4.1 TWO activities of the administration function:
 Management of information√
 Handling information√
 Office practice√
 Information technology√

NOTE: mark the first TWO responses. (2)

4.2.1 TWO steps of the purchasing procedure:
 Determine the need for the product/Requisition√√
 Determine the price of the product√√
 Select/choose a suitable supplier√√
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Business Std. Gr 10 Controlled Test MG Grantley College Term 1/2024
 Place an order√√
 Collect or receive the order√√
 Pay the supplier√√
 Distribute the stock√√
 Complete the order√√

NOTE: Steps can be in any order

Mark the first 2 responses (4)

4.3 Reasons why the technological environment may pose challenges

on businesses:
 Businesses may not be able to keep up with/be aware of√ the latest technology. √
 Employees may not be skilled to operate/maintain√ new technology/ equipment. √
 Staying up to date with the latest and greatest technology√ can be expensive. √
 Businesses experiencing systems failure will be rendered paralysed, √ which will cause
businesses to lose capital due to stalling in operations√
 Business’s IT systems may be hacked by fraudsters, √ and this could expose its
confidential information/be damaging to the business√
 Any other relevant answer related to reasons why the technological environment may pose
challenges on businesses. (4)

4.4 The meaning of working capital:

 The capital of the business which is used for day-to-day activities, √ for example, trading
stock, raw materials, and so on. √
 It finances the short-term capital needs√ of the business. √
 Examples: money market, the credit allowed by suppliers, short terms loans, and so on√
 Any other relevant answer related to the meaning of working capital.
(2)

4.5 Differences between quality assurance and quality control.

Inspection of the final product√ to Carried out during and after the
ensure that it meets the required production process√ to ensure required
standards. √ standards have been met at every stage
of the process√
Includes setting targets/measuring Ensure that every process is aimed at
performance√ and taking getting the product right first time√ and
corrective measures. √ prevent mistakes from happening
again.√

Sub max: 2 Sub max: 2

(4)
4.6 The impact of the Consumer protection Act.
Positives/Advantages
 Businesses may be safeguarded√ from dishonest competitors. √

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Business Std. Gr 10 Controlled Test MG Grantley College Term 1/2024
 Businesses may be protected√ if they are regarded as consumers. √
 Prevents larger businesses from undermining√ smaller ones. √
 May gain consumer loyalty√ if they comply with CPA. √
 Enables businesses to resolve disputes fairly√ through the National Consumer
Commission/Consumer Court/Industrial ombudsmen. √
 Businesses may build a good image√ if they ensure that they do not violate consumer
rights. √

AND/OR

Negatives/Disadvantages
 Confidential business information may become available√ to competitors. √
 Penalties for non-compliance√ may be very high. √
 Businesses may feel unnecessarily burdened√ by legal processes√
 They have to disclose more information√ about their products and processes/services√
 Staff need to be trained/Legal experts need to be consulted√, which can increase costs√
 Any other relevant answer related to the impact of the CPA
(4)

[20]
TOTAL SECTION B: 40

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Business Std. Gr 10 Controlled Test MG Grantley College Term 1/2024
SECTION C: Choose ONE question from this section.

QUESTION 5: BUSINESS ENVIRONMENTS

5.1 Introduction
 Businesses do not operate in isolation as they are surrounded by challenges posed by the
market and macro environment. √
 The profitability and success of businesses depend on the accurate identification of the
elements of the micro-environment. √
 The vision/mission statement/goals/objectives provide guidelines on how businesses
should go about doing things. √
 The success of the micro-environment depends on its interaction with components of the
market environment. √
 Any other relevant introduction related to the micro, market and macro
environment/interrelationship of the business environments/challenges posed by
competition.
Any 2x1=2

5.2 The meaning of micro, market and macro environment

5.2.1 Meaning of the micro environment
 It is the environment within which a business operates √ and consists of the business
itself.√
 It is the decision-making environment √ because management makes decisions that help
the business achieve its goals. √
 It can also be referred to as the immediate environment in which a business operates √ and
includes all the internal factors of the business. √
 Any other relevant answer related to the meaning of the micro-environment.
Sub max: 4
5.2.2 Meaning of the market environment
 Challenges and influences√ outside the business. √
 Businesses have little or no control√ over the environment. √
 All elements that determine the reasons√ for the existence of a business. √
 Includes all forces/stakeholders that have a direct effect √on the functioning of the
business. √
 Any other relevant answer related to the meaning of the market environment

5.2.3 Meaning of macro environment

 It refers to the interaction of businesses√ with forces outside of themselves. √
 The macro environment is also known as√ the external environment. √
 The external environment presents both opportunities and threats. √
 It is always changing√ and developing. √
 Businesses have no control√ over this environment√
Sub max: 4
Max: 12

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Business Std. Gr 10 Controlled Test MG Grantley College Term 1/2024

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Business Std. Gr 10 Controlled Test MG Grantley College Term 1/2024
5.3 Components of the micro environment
5.3.1 Mission
 A statement that explains the reason √ for the business’s existence. √
 Enables businesses to develop strategies √ to achieve their vision. √
 The answer to the question such as √ what businesses need to do to make a profit. √
 Explains what the business does √ to achieve its vision. √
 Gives clear direction on how the business √ intends to achieve its vision. √
 Describes the purpose and basic activities √ of the business. √
 Example ‘To become a word-class communication company. √
 Any other relevant answer related to the mission statement as a component of a micro-
environment.
Sub max: 2

5.3.2 Goals
 Goals are the long-term plans√ that the business wants to accomplish. √
 They serve as guidelines to help businesses achieve√ what they set out to do. √
 For example: To open five more branches in the next five years√
 Any other relevant answer related to goals as a component of a micro-environment
Sub max: 2
5.3.3 Vision
 Refers to a statement that explains √ what a business aims to achieve. √
 Answer to the question: √ ‘where are going from here?’ √
 Sets out where the business needs to go √ to be successful. √
 The dream of the business √ and what it wants to achieve in the future. √
 Gives businesses a clear idea √ of what they want to achieve. √
 The inspiring statement √ about what a business wants the future to look like. √
 Explains what a business aims to achieve √ taking into consideration its purpose. √
 Example ‘To provide job opportunities for the local community. √
 Any other relevant answer related to the vision as a component of a micro-environment.
Sub max 2

5.3.4 Objectives
 Short-term tasks/steps √ to reach goals. √
 Contain a deadline √ for achievement. √
 Explains how the goals of the business √ will be reached. √
 Explains targets and strategies √ that will help the business fulfil its mission. √
 The purpose of the business, √ for example, a business may have a primary objective of
making a profit and a secondary objective of social upliftment. √
 Any other relevant answer related to objectives as a component of a micro-environment.
Sub max: 2
Max: 8

5.4. Interrelationship of the business environments:

5.4.1 The business and consumers
 Consumers are willing and able to pay for the business’ products/services
 The business needs to market/advertise its goods and services to ensure that there is
demand for them
 The business needs to carry out market research to determine the appropriate type of
goods and services, and the best price for them.
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Business Std. Gr 10 Controlled Test MG Grantley College Term 1/2024
The public relations department should ensure that the business has a good image and that
its consumers remain loyal.√√
 Any other relevant answer related to the relationship between a business and consumers.
Sub max: 6
5.4.2 The business and intermediaries
 The intermediaries of a business are all those businesses that play a role in
distributing/promoting √ the goods and services to customers. √
 They bridge the gap between the manufacturer√ and the consumer. √
 They serve as a link between the micro-environment√ and the market environment. √
 Intermediaries make it easier for the consumer to access the product√, by selling the
product closer to the consumer’s location. √
 Intermediaries often affect the final price of goods and services√ as they place a mark-up
on the product before they sell it to consumers. √
 Many intermediaries/Agents receive a commission on the sale of products.
 Some of the examples of intermediaries are retailers/agents/wholesalers/financial
institutions /insurance brokers etc. √
 Any other relevant answer related to the interrelationship between the business and
intermediaries.
Sub max 6

5.4.3 The business and suppliers

 Suppliers are individuals/agents who provide the raw materials/transport√ and other
services to the business. √
 The business needs inputs from suppliers√ to produce goods and services. √
 Suppliers play an important role in the success or failure of a business√ e.g., consumers
will purchase the product/services from another business if a supplier is unable to supply a
particular product/service. √
 Businesses usually choose suppliers that provide the best quality of goods/correct quantity√
and deliver goods at the agreed-upon times and at the best price. √
 Producers and manufacturers are some examples of suppliers as they supply raw
materials.
 Any other relevant answer related to the interrelationship between the business and
suppliers.
Sub max 6
Max: 16

5.5 Reasons why competition poses a challenge to businesses

 Competition as one of the components of the market environment poses a challenge to
businesses because it is not within the control of the business. √√
 Consumers will buy from the business where they get the most value for money and they
could choose the competitor. √√
 Business could find that they are unable to make sufficient profit when the demand is not
high enough. √√
 Businesses could find it hard to differentiate itself from its competitors to gain a competitive
advantage. √√
 New entrants with better products can also enter the market and divide the market even
more thus decreasing the businesses market share. √√

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Business Std. Gr 10 Controlled Test MG Grantley College Term 1/2024
 Any other relevant answer related the reasons why competition poses a challenge on
businesses.
Max:10
5.6 Conclusion
 The business has the power in the internal environment to control variables to remain
sustainable. √√
 Businesses need to create and maintain strong relationships with their stakeholders in each
business environment. √√
 Businesses need to constantly find ways of ensuring that competition does not reduce their
market share√√
 Any other relevant conclusion related to the micro, market and macro
environment/interrelationship of the business environments/challenges posed by
competition.
Any 1x2=2
QUESTION 5: BREAKDOWN OF MARK ALLOCATION

DETAILS MAXIMUM TOTAL

Introduction 2
Meaning of the micro, market and macro environments 12
Components of the micro environment 8 Max
Interrelationsip of the business environments 16 32
Reasons why competition poses a challenge on businesses 10
Conclusion 2
INSIGHT
Layout 2
Analysis/Interpretation 2 8
Synthesis 2
Originality/Examples 2
TOTAL MARKS 40
[40]

QUESTION 6: BUSINESS FUNCTIONS

6.1 Introduction
 Although leadership is an intrinsic characteristic, people can be trained in leadership skills.√
 The three levels of management control all activities in a business. √
 Functional structures are commonly used by businesses to organise employees into
different departments√
 The human resources and financial functions must perform their activities in such a way
that they contribute to quality in the business√
 Any other relevant introduction related to management & leadership/levels of
management/organisational structure/human resources function/financial function.
Any 2x2 = 2
6.2 Differentiate between management and leadership.
Leadership Management
A leader creates√ a vision/sets A manager understands the goals√ of
direction.√ the business. √
Leaders create the team√ and inspire Managers ensure that tasks given to

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Business Std. Gr 10 Controlled Test MG Grantley College Term 1/2024
the subordinates. √ subordinates√ are completed. √
He/she influences√ human behaviour√ He/she guides human behaviour
A leader communicates√ using vision/ A manager communicates√ through
charisma. √ management functions, for example,
line function. √
Leaders are born with natural/ A person becomes a manager because
instinctive√ leadership skills. √ he/she is appointed√ to the position. √

Any other relevant answer related to Any other relevant answer related to
leadership management

Sub max: 6 Sub max: 6

Max: 12

6.3 THREE levels of management:

6.3.1 Top level/top management/senior management√√
 Oversees the activities of the other functions√ so that the business can achieve its
objectives. √
 Comprises of the CEO√ and directors. √
 Develop long-term goals, strategic plans, √ and business policies. √
 Determine the vision/mission/objectives/strategy√ of the business. √
 Ensure that people work together√ to accomplish certain goals. √
 Any other relevant answer related to top level management
Sub max: 6

6.3.2 Middle level/middle management√√

 Responsible for specific departments√ within the business.√
 Take medium-term tactical√ decisions. √
 Execute the organisational plans√ in conformance with the companies policies.√
 Responsible for achieving the goals and objectives√ set for specific departments.√
 Implement plans√ made by top-level management.√
 Implement the vision and plans of the top management.√
 Work with managers in other departments and acquire resources needed√ in their
departments√
 Any other relevant answer related to middle level management
Sub max: 6

6.3.3 Lower level/lower management√√

 Act as role models for employees√ because they provide supervision, performance
feedback, and so on. √
 Focus on controlling√ and directing.
 Responsible for a high level of productivity, technical assistance,√ and motivating
employees. √
 Take short-term routine/operational√ decisions. √
 Implement instructions given by middle management √
 Called the first management level√ because it is the first management level to which
subordinates can be promoted. √
 Any other relevant answer related to lower level management
Sub max: 6
Max: 14
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Business Std. Gr 10 Controlled Test MG Grantley College Term 1/2024

6.4 The purpose of an organisational structure

 Helping to ensure the smooth and efficient functioning√ of the business. √
 Ensuring that work happens with precise co-ordination and minimum wastage of
resources.√
 Helping the business to work towards√ its goals. √
 Show the connections between various positions and tasks√ in the business.√
 It describes the coordination between various departments√ in the business√
 Ant other relevant answer related to the purpose of an organisational structure
Max: 8

6.5 The quality indicators of the following business functions

6.5.1 The human resources function

 A Low rate of staff turnover in the business. √√
 Maintain a healthy relationship between employees and employer √√
 Provide good working conditions√√
 The HR manager should work towards building a good relationship
with employees. √√
 Performance incentives for staff should be offered to increase productivity.√√
 Market-related salaries should be offered. √√
 Fair remuneration packages that are aligned to the industry should be provided.√√
 Makes sure there is a good recruitment policy that attracts best candidates. √√
 Ensures fair and equitable selection process√√
 Offer performance incentives for staff to enhance productivity. √√
 Good relationship with employees. √√
 Ensure that employee understand the goals and objectives of the business√√
 Understand the interrelatedness of different departments√√
 Any other relevant answer related to the quality indicators of the human resources function.
Sub max: 6

6.5.2 The quality indictors of the financial function

 Ensuring a healthy cash flow through ensuring payments are made on time. √√
 The financial function has to obtain capital from the most suitable sources. √√
 They should draw a budget to ensure sufficient allocation of cash to prevent wastage.√√
 Financial records to be kept up to date. √√
 Accurate financial statements should be drawn up so that management can see the
performance of the business. √√
 Accountability through tight financial processes. √√
 Negotiate better interest rates in order to keep financial cost down. √√
 Draw up accurate financial statements timeously/regularly. √√
 Surplus funds should be invested to save for future projects/expansion/growth. √√
 Any other relevant answer related to the quality indicators of the human resources function.
Sub max: 6
Max: 12

6.6 Conclusion
 The level of management determines a chain of command, the amount of authority, and
status enjoyed by any managerial position. √√

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Business Std. Gr 10 Controlled Test MG Grantley College Term 1/2024
 An organisational structure shows the level of authority, responsibility and tasks of the
various departments in the business. √√
 Each business function is required to contribute towards the overall quality in a business.√√
 Any other relevant introduction related to management & leadership/levels of
management/organisational structure/human resources function/financial function.
Any 1 x 2 = 2
QUESTION 6: BREAKDOWN OF MARK ALLOCATION

DETAILS MAXIMUM TOTAL

Introduction 2
Differences between management and leadership 12
Management levels 14 Max
Purpose of an organisational structure 8 32
Quality indicators of the business functions 10
Conclusion 2
INSIGHT
Layout 2
Analysis/Interpretation 2 8
Synthesis 2
Originality/Examples 2
TOTAL MARKS 40
[40]

[40]
Total Section C: 40
Grand TOTAL: 100

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