GRADE 10 BUSINESS STUDIES P1 ANSWERS

SECTION A
QUESTION 1
1.1
1.1.1 C
1.1.2 B
1.1.3 D
1.1.4 A
1.1.5 B
1.2
1.2.1 competitors
1.2.2 public relations
1.2.3 data
1.2.4 primary
1.2.5 functional organizational structure

QUESTION 2: BUSINESS ENVIRONMENTS

2.1 ORGANISATIONAL RESOURCES (Any three)
 Human resources
 Physical resources
 Financial resources
 Technological resources
2.2 NGO (Answer in page 28 from your term 1 notes. Write any three bullet points)
 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.
 NGO’s have high ethical and moral standards.
2.3
2.3.1 Component of micro environment – Organisational culture
Motivation – “New employees are trained on how to communicate among
themselves, dress code and administration policy”.
2.4 RELATIONSHIP BETWEEN MICRO, MACRO AND MARKET ENVIRONMENTS

(Answer in page 37 from your term 1 notes. Write any two bullet points)
 Changes in the macro environment may affect the micro environment which
may then affect the market environment.
 The business has full control over all elements/features of the micro
environment.
 The business has less/little control over the market environment but it can
influence it.

2.5 REASONS WHY TECHNOLOGICAL COMPONENT OF MACRO

ENVIRONMENT POSES A CHALLENGE TO BUSINESSES (Answer in page 33

from term 1 notes and page 53 in learner book. Write any two bullet points)
 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.
 Many businesses may not be able to succeed without internet connectivity.

QUESTION 3: BUSINESS OPERATIONS

3.1 TYPES OF CAPITAL (Write any three)

 Fixed capital
 Working/operating capital
 Own capital
 Borrowed capital

3.2 PURPOSE OF CONSUMER PROTECTION ACT (Answer in page 21 in term 1

notes. Write any three bullet points)
 Promotes responsible consumer behaviour.
 Strengthens a culture of consumer rights and responsibilities
 Establishes national standards to protect consumers.
 Establishes a National Consumer Commission (NCC).
3.3
3.3.1 Business Function:
General Management- “Moloko is responsible for setting the overall direction for the
business.”
Human Resources- “The business has employed managers to oversee different
departments.”
3.4 IMPORTANCE OF PUBLIC RELATIONS (Answer on page 22 from term 1
notes. Write any two bullet points)
 Businesses can sponsor community events.
 Produce annual reports that review business activities and achievements.
 Brochures can be used to distribute information.

3.5 IMPORTANCE/PURPOSE OF STOCK CONTROL (Answer in page 19 from term

1 notes. Write any two bullet points)

 Enables businesses to determine the amount/value of stock.
 Businesses can check the cost and selling price of products.
 Keep the correct levels of stock on hand.
 Record the cost prices and selling prices of stock.
QUESTION 4: MISCELLANEOUS
4.1 THE MEANING OF THE MARKET ENVIRONMENT (Answer in page 26 from
term 1 notes. Write any one bullet point)
 Challenges and influences outside the business.
 Businesses have little or less 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.
4.2
4.2.1 Social environment
4.2.2 Economic environment
4.3 DIFFERENCES BETWEEN MANAGEMENT AND LEADERSHIP (Answer in
pages 5 and 6 from term 1 notes. Write any one bullet points each)

MANAGEMENT LEADERSHIP
 Task orientated  People orientated
 Uses instructional approach  Uses motivational approach

4.4 LEVELS OF MANAGEMENT

 Top management
 Middle management
 Lower management
4.5 SOURCES OF FINANCING
4.5.1 Grants
4.5.2 Bank loans
4.6 POSITIVE IMPACT OF NATIONAL CREDIT ACT (Answer in page 20 in term 1
notes. Write any two bullet points)
 Lower 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.

SECTION C
QUESTION 5: BUSINESS ENVIRONMENTS

INTRODUCTION
 A relationship between the primary, secondary and tertiary sectors is that the
sectors work together to create an economic chain of production.
 An importance of the formal sector is that they supply legal products.
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BODY
THE MEANING OF FORMAL SECTOR (Answer in page three from term 2 notes)
(NOTE: THE MAXIMUM MARKS FOR MEANING/DEFINITION QUESTIONS IS 4
MARKS. IF YOU KNOW MORE POINTS, YOU CAN USE THAT IN THE
INTRODUCTION OR CONCLUSION PART OF THE ESSAY. ALWAYS TRY TO
LEARN THREE POINTS FOR MEANING/DEFINITION QUESTIONS TO BE SAFE).
 Formal sector refers to businesses that are registered and pays tax.
 The formal sector within the mainstream of the economy.
 This sector includes small, medium and large businesses.
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THE RELATIONSHIP BETWEEN THE PRIMARY, SECONDARY AND TERTIARY
SECTORS (Answer in page 2 from term 2 notes. Write any three bullet points since
one point is written in the introduction part). (NOTE: NO POINTS CAN BE
REPEATED)
 The primary sector depends on the secondary sector for manufactured goods
such as machinery/equipment/fertilisers e.g. a farmer may require seeds from
another farm.
 The primary sector is dependent on the tertiary sector for its customer needs
(insurance and transport).
 The secondary sector processes the raw materials obtained from the primary
sector into more useful products.
 The secondary sector depends on the primary sector for raw materials and
products.
 The secondary sector depends on other secondary industries e.g. BMW needs
tyre from DUNLOP another secondary sector player.
  Secondary sector needs the tertiary sector to sell their processed or
manufactured goods and also for services such as banks, insurance, transport
and communication.
 The tertiary sector depends on the primary sector for raw materials that do not
need processing by the secondary sector.
 The tertiary sector depends on the secondary sector for manufactured goods
such as office machines/office furniture/stationery etc.
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DIFFERENCES BETWEEN PUBLIC SECTOR AND PRIVATE SECTOR (Answer in
page 6 and 7 from term 2 notes. Write any two bullet points each. The maximum
marks for differences between questions are 8 marks, if you know more points you
can write one point in either introduction or conclusion part).
PUBLIC SECTOR PRIVATE SECTOR
 Aim is to meet the needs of the  Aim is to meet both the needs and
society wants of the society.
 State owned/state run or  Privately owned by entrepreneurs
parastatals which are operated
by private company.
 Partly or wholly funded by tax  Owners raise capital to fund
money their businesses
 Motive is to provide a service  Motive is to make a profit
 State ownership  Owned by different forms of
ownership.
 State owned businesses  Businesses in this sector do not
report to government report to the government but to
owners.
 Government monitors and  Owners oversees their performance
oversees their performance
 It is the part of the economy,  These businesses are privately
where goods and services of owned and provide goods and
public interest are provided by services with the aim of making a
the government. profit.
 They provide public goods and  They offer a large variety of goods
services such as water and and services to meet the demands
electricity to meet the needs of of consumers.
its people.
 They are tasked with improving  These companies also give back to
the general standard of living of the people by uplifting the
all citizens. community through corporate social
responsibility programs.
 These companies should  They provide opportunities for other
ensure the equal distribution of businesses to create wealth for
wealth among the rich and growth.
poor.
 They are also tasked with  They also support the public sector
providing infrastructure that through public-private-partnership
supports private sector agreements.
development.
 Examples include Eskom,  Examples include banks, hotels,
 Denel, SABC, South African insurance companies, restaurants
Airways (SAA), Transnet. and retailers.
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THE IMPORTANCE OF FORMAL SECTOR AND INFORMAL SECTOR
IMPORTANCE OF FORMAL SECTOR (Answer in page 3 from term 2 notes. Write
any three bullet points as we wrote one point in the introduction part). (NOTE: NO
POINTS CAN BE REPEATED)
 Products supplied by the formal sector are guaranteed, which means that faulty
goods can be returned.
 They employ many people with different skills and qualifications.
 Business activities are included in the GDP figures of the country.
 Companies pay taxes on their profits.
 People who are employed at companies pay personal income tax.
 People working in the formal sector gain the necessary skills to start their own
businesses.
 Provides a large variety of goods and services to satisfy consumers.
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IMPORTANCE OF INFORMAL SECTOR (Answer in page 4 from term 2 notes.
Write any three bullet points as we need one point in the conclusion part)
 Provides jobs/ income to communities thereby alleviate poverty.
 People working in the informal sector gain work experience to be used for the
formal sector.
 Encourages entrepreneurship and self-employment.
 Provides opportunity for marginalised /disadvantaged people by encouraging
street trade.
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CONCLUSION
 An importance of informal sector is that it serves as buffer between employment
and unemployment.

NOTE:
 Answers must be written in bullet points and not in paragraphs.
 Introduction consists of two bullet points and those two bullet points
must come from two different questions.
 Conclusion consists of one bullet point and that point must come
from some other question. You cannot use the same question which
you took in the introduction part.
 There is no additional part in business studies essays.
 Body part consists of four sub-headings.
 If you wrote one bullet point in the introduction/conclusion, you
 cannot write the same point in the body section.

QUESTION 6: BUSINESS OPERATIONS

INTRODUCTION
 The meaning of quality is the ability to satisfy customer/consumer needs.
 An importance of quality for businesses is that it enables businesses to
have a good reputation and promotes brand awareness.
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BODY
MEANING OF QUALITY (Answer in page 24 from term 1 notes. Write any
three points as we wrote one point in the introduction part).
 It refers to the features/characteristics of a product/service that meets
customer’s requirements.
 It refers to products and services that satisfy needs and exceeds
customer expectations on a continuous basis.
 Includes learning from mistakes and continuously improving all aspects of
the business.
 It is a degree of excellence to which a product/service satisfies the
required needs of customers.
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IMPORTANCE OF QUALITY FOR BUSINESSES (Answer in page 25 in
term 1 notes)
 Customers associate image of the business with quality of the product.
 Quality products increase sales, profits, business growth and attracts
prospective investors.
 Businesses gain goodwill and support from the community.
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QUALITY INDICATORS OF GENERAL MANAGEMENT FUNCTION
(Answer in page 26 from term 1 notes)
 Develop/Implement/Monitor effective strategic plans.
 Set direction and establish priorities for their business.
 Effectively communicate shared vision, mission and values.
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DIFFERENCES BETWEEN QUALITY CONTROL AND QUALITY
ASSURANCE (Answer in page 25 from term 1 notes)
QUALITY CONTROL QUALITY ASSURANCE
 Inspection of the final product  Carried out during and after the
to ensure that it meets the production process to ensure
required standards. required standards have been
met at every stage of the
process.
 Includes setting targets/measuring  Ensure that every process is
 performance and taking corrective aimed at getting the product
measures. right first time and prevent
mistakes from happening again.
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CONCLUSION
 A quality indicator of general management function is to ensure that all
departments/the business meet their deadlines/targets.