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Directorate: Curriculum FET

BUSINESS STUDIES
REVISION BOOKLET
2020 TERM 2

Grade 12

This revision program is designed to assist you in revising the

critical content and skills covered during the 2nd term. The
purpose is to prepare you to understand the key concepts and
to provide you with an opportunity to establish the required
standard and the application of the knowledge necessary to
succeed in the NCS examination.

The revision program covers the following topics:

• Business Sectors
• Quality of Performance
• Management & Leadership
• Investment: Securities
• Investment: Insurance
• Team Performance & Conflict Management
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INDEX PAGE

Contents Page number

1 Business Studies Main Topics & Topics 2

2 Pre-Test 3-4

3 Business Sectors 5-6

4 Quality of Performance 7 - 11

5 Management & Leadership 12 - 14

6 Investment: Securities 15 - 19

7 Investment: Insurance 19 - 22

8 Team Performance & Conflict Management 23 - 24

BUSINESS STUDIES – GRADE 12: MAIN TOPICS & TOPICS

Business Business Business Business

Environment Ventures Roles Operation

Impact of recent Management Professionalism Human

1 legislation on and leadership and Ethics Resources
business function
Devise strategies Investment: Creative thinking Quality of
2
Securities performance
Business sectors Investment: Concept of corporate
3 and there Insurance social responsibility.
environments
Forms of ownership Team performance
and their impact Assessment and
4
on the business conflict
operation Management
Presentation of Human Rights,
5 information Inclusivity and
and data response Environmental issues
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Gr 12 Business Studies Learner:
2020 Term 2 - Revision School:

Pre-Test
1. Business Sectors

Challenge Bus Environment Extent of Control

TLS’s assistant lawyers are not trained to 1.1 1.4
handle criminal cases.
Another law firm, Mbuzi Inc. has set up a 1.2 1.5
law practice in the same office block as
TLS.
TLS can no longer service their bank loan 1.3 1.6
due to an increase in interest rates.

2. Benefits of a good quality management system

2.1 Effective customer services are rendered, resulting in increased

…
2.2 Time and … are used efficiently.
2.3 … increases through proper time management/using high
quality resources.
2.4 Vision/Mission/Business goals may be …
2.5 Business has a … over its competitors.
2.6 Products/Services are constantly improved resulting in … levels
of customer satisfaction

3. Leadership Styles

3.1 The leader allows the employees to participate in the decision

making process, so they feel empowered/positive
3.2 Quick decisions can be taken without consulting/considering
followers/ employees
3.3 Subordinates are experts and know what they want/can take
responsibility for their actions
3.4 Encourages employees to work hard because they will receive
rewards
3.5 Employees are motivated as the leader is energetic/ inspiring

3.6 Managers ensure that rules/ regulations are always followed

accurately
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4. Functions of the JSE

4.1 Gives opportunities to … such as insurance companies to invest their

funds in shares.
4.2 Serves as a barometer/indicator of … in South Africa.
4.3 Keeps investors informed on … by publishing the share prices daily.
4.4 Acts as a link between … and public companies.
4.5 Shares are valued and assessed by …
4.6 … are invited to take part in the economy of the country through the
buying/selling of shares.
4.7 Regulates the … for dealing with shares

5. Insurance concepts

5.1 A contract between a person/business/insured requiring insurance

cover and the insurance company/insurer bearing the financial risk
5.2 Occurs when property or assets are insured for less than its full market
value
5.3 A stipulation set by the insurer which is applicable when
property/goods is under insured/insured for less than its market value
5.4 It is a stipulation whereby the insurer may replace lost/damaged
property/goods instead of reimbursing.
5.5 Applies to short term insurance, as the insured is compensated for
specified/proven harm/loss.
5.6 Applies to long-term insurance where the insurer undertakes to pay out
an agreed upon amount in the event of loss of life.
5.7 Insured has to be honest in supplying details when entering in an
insurance contract.
5.8 Occurs when the item is insured for more than the actual market value
5.9 A clause which states that the insured is responsible for a fixed amount
of the claim, when submitting a claim.
5.10 Insured must prove that he/she will suffer a financial loss if the insured
object is damaged/lost/ceases to exist.

6. Stages of Team Development

6.1 Individuals gather information and impressions about each other and
the scope of the task and how to approach it.
6.2 Different ideas from team members will compete for consideration
6.3 Roles and responsibilities are clear and accepted
6.4 All members are now competent, autonomous and able to handle the
decision-making process without supervision.
6.5 The focus is on the completion of the task/ending the project

TOTAL: 40
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1. Business Sectors

1. Name THREE types of business sectors.

• This question requires you to recall the three types of Business Sectors.
• The three types are: Primary-; Secondary- and Tertiary Sectors

• You may also be asked to identify the three types of business sectors from a scenario:

MAC FORESTRY PLANTATIONS (PTY) LTD

The founders of Mac Forestry Plantations (Pty) Ltd supplies timber to Swazi Timber Ltd, who
manufactures furniture. Mac Plantation (Pty) Ltd borrowed capital from Peoples’ Bank to
finance expansion.

Write your answers below:

1 Primary sector
2 Secondary sector
3 Tertiary sector

2. Identify business challenges from given scenarios/case studies and classify them according
to the THREE business environments.

• This question requires you to respond in TWO ways

• Firstly: Identify business challenges
• Secondly: Classify the challenges according to Three Business Environment
BHEKI’S CHICKEN FARM (BCF)
Bheki’s Chicken Farm’s employees are regularly absent on Mondays. Their suppliers of
chicken feed do not deliver stock on time. The storeroom and office block of BCF was
destroyed by a heavy rain.

2.1 Quote THREE challenges that BCF is facing from the scenario above. (3)
2.2 Classify the challenges according to the THREE business environments. (3)
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CHALLENGES BUSINESS ENVIRONMENT

[2.1.] [2.2]
Employees are regularly absent on Mondays. Micro

Suppliers of chicken feed do not deliver stock on time. Market

The storeroom and office block of BCF was destroyed Macro

by a heavy rain.

It’s always advisable to draw a TWO column table and write your answers in the table:

3. State/Explain the extent to which a business (operating in any of the three sectors) can
control the three business environments from given scenarios and case studies.

• Use the mind-map below to assist you with remembering the Business Environments &
Extent of control for each of the Business Environments
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2. Quality of Performance

In this topic you are required to know and apply the following:

2.1. Define the following concepts.

Quality Quality Control Quality Assurance

Quality Management Quality Performance Quality Management Systems

Use the following key words to assist you with remembering the meaning of the terms:

1 Quality Good / Service satisfy a need

2 Quality Control Inspecting the final product to ensure that it meets the required
standards.
3 Quality Assurance Ensure that required standards have been met at every stage of
the process.
4 Quality Management Managing all activities needed to ensure a business produces
goods and services of consistently high standard.
5 Quality Performance Total performance of each department measured against the
specified standards
6 Quality Management All policies, processes, strategies and resources needed to
Systems implement quality management.

2.2. Explain/Differentiate/Distinguish between quality control and quality assurance

• To explain the difference is simply to say what each concept means

1 Quality • A system that ensures the desired quality is met by inspecting the final
control product to ensure that it meets the required standards.
• Includes setting targets/measuring performance and taking corrective
measures.
2 Quality • Checks carried out during and after the production process.
assurance • Ensure that required standards have been met at every stage of the
process.

• Distinguish between quality control and quality assurance you are required to tell the
concepts apart from each other. The best way to do this is to draw a TWO column table.
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Quality control Quality assurance
• Inspection of the final product to ensure • Carried out during and after the production
that it meets the required standards. process to ensure that
required standards have been met at every
stage of the process.
• Includes setting targets/measuring • Ensures that every process is aimed at
performance and taking corrective getting the product right the first time and
measures. prevents mistakes from happening again.
• Checking raw materials/employees/ • The 'building in' of quality as opposed to
machinery/ workmanship/products to 'checking for' quality
ensure that high standards are
maintained.

2.3. Explain/Differentiate/Distinguish between quality management and quality

Performance

Refer to 2020 WCED Grade 12 Core Notes – Bus Environment & Operations, Pg. 67 or the Gr
12 Business Studies textbook issued to you for the solution

2.4. Explain/Discuss the advantages/benefits of a good quality management system.

Refer to 2020 WCED Grade 12 Core Notes Notes – Bus Environment & Operations, Pg. 67
or the Gr 12 Business Studies textbook issued to you for the solution

Please note that you can either be asked to explain the advantages or to explain the
benefits of a good quality management system. Both questions require the same
response. Key words to remember are the following:
Effective customer Time and resources Productivity increases
services efficiently
Products/Services are Business goals may be Business has a competitive
constantly improved achieved advantage

HIGH PERFORMING LEARNERS ONLY

Effective customer Time and resources Productivity increases … (Indicate
services, … (Indicate efficiently … (Indicate how?)
benefit for the business) benefit for the business)

Products/Services are Business goals may be Business has a competitive

constantly improved achieved … (Indicate advantage, (Indicate over whom?)
(Indicate benefit for the benefit for the business)
business)
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2.5. Explain/Discuss how quality of performance can contribute to the success and/or
failure of each business function.

Refer to 2020 WCED Grade 12 Core Notes Notes – Bus Environment & Operations, Pg. 67 or
the Gr 12 Business Studies textbook issued to you for the solution

2.6. Outline the quality indicators for each business function.

Refer to 2020 WCED Grade 12 Core Notes Notes – Bus Environment & Operations, Pg. 67 or
the Gr 12 Business Studies textbook issued to you for the solution

Please note that both questions require a similar response.

An easy way to remember the EIGHT business functions is to remember the following sentence. Use
the first letter of each word to prompt assist with the names of the business functions:

Good People Play Music and Honest Poets Admit Failure

2.7. Elaborate on the meaning of Total Quality Management [TQM]

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2.8. Identify the following TQM elements from given scenarios/statements:

Choose from the following TQM elements the correct element for each statement:
[Continuous skills development; Total client/customer satisfaction; Continuous
improvement of processes and system; Adequate financing and capacity; Monitoring
and evaluation of quality processes ]
Statement TQM Element
1 Businesses have resources to check on quality
performance in each unit.
2 Product, service, and overall experience meets, or
exceeds customer expectations.
3 Constant expansion of skills and skill-sets through learning
and increasing knowledge
4 Sufficient capital and resources to meet planned output
levels
5 Indication about quality aspects that are contributing to
the achievement of goals/targets.

2.9 Explain/Discuss/Analyse/Evaluate the impact of the TQM elements on

large businesses

Refer to 2020 WCED Grade 12 Core Notes – Bus Environment & Operations,
Pg. 70 – 72 or the Gr 12 Business Studies textbook issued to you for the solution

Please note the following:

• The impact refers to the advantages [positives] and/or disadvantages [negatives]
• Your responses may therefore be only the Advantages or only the Disadvantages.
• Look at te mark allocation to guide you
• If the question to refers to the positive impact of TQM element/s
• Your responses MUST only refer to the Advantages of TQM element/s

2.10. Explain how businesses can apply the PDCA model/steps to improve the quality of
products.

Refer to 2020 WCED Grade 12 Core Notes – Bus Environment & Operations,
Pg. 72 or the Gr 12 Business Studies textbook issued to you for the solution
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2.11. Explain the role/importance of quality circles as part of continuous improvement
to processes and systems.

Refer to 2020 WCED Grade 12 Core Notes – Bus Environment & Operations, Pg. 72
or the Gr 12 Business Studies textbook issued to you for the solution

2.12. Explain/Discuss the impact of TQM if poorly implemented by businesses.

Refer to 2020 WCED Grade 12 Core Notes – Bus Environment & Operations, Pg.
73 or the Gr 12 Business Studies textbook issued to you for the solution

Fill in the missing word

1. Setting unrealistic … may not be achieved.
2. Employees may not be adequately … resulting in poor quality products.
3. Decline in … because of stoppages
4. Business … may suffer because of poor quality/defective goods.
5. … might withdraw investment, if there is a decline in profits.
6. Decline in sales as more goods are returned by … customers.
7. High staff … because of poor skills development.

2.13. Explain/Recommend/Suggest ways in which TQM can reduce the cost of quality.

Refer to 2020 WCED Grade 12 Core Notes, Notes – Bus Environment & Operations Pg. 73
or the Gr 12 Business Studies textbook issued to you for the solution

Fill in the missing word

1. Introduce … to discuss ways of improving the quality of work/ workmanship.
2. … to eliminate duplication of tasks.
3. … for quality output amongst management and workers.
4. … at all levels, so that everyone understands their role in quality management.
5. Develop … that empower employees to find new ways of improving quality.
6. Work closely with … to improve the quality of raw materials/inputs.

HIGH PERFORMING LEARNERS ONLY

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3. Management & Leadership

In this topic you are required to know and apply the following

3.1. Define/Elaborate on the meaning of Management and Leadership

Leadership – Emphasis is on individuals that influence; guide; inspires and motivates

Management – Emphasis is on individuals that focusses on planning, organising, leading and

controlling

3.2. Differentiate/Distinguish between management and leadership.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 35 or the
Gr 12 Business Studies textbook issued to you for the solution

Complete the table below to show the differences

Leadership Management
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.

3.3. Leadership styles:

An easy way to remember the SIX leadership styles is to remember the following sentence. Use the
first letter of each word to prompt assist with the leadership style

Teenagers Love Buying Cars And Driving

T Transactional L Laissez-Faire B Bureaucratic

C Charismatic A Autocratic D Democratic
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3.4. Outline the differences/Differentiate/Distinguish between the leadership styles:

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 38 or the
Gr 12 Business Studies textbook issued to you for the solution

3.5. Identify the leadership styles from given scenarios/case studies and motivate answers

Identify the leadership styles that Gem Mining has applied in EACH statement below.
1 Employees must perform tasks according to rules and procedures.
2 Management makes urgent decisions to manage crisis.
3 Supervisors use charm to motivate employees.
4 Top management depends on the inputs of experienced employees to
make operational decisions.
5 Highly skilled employees are not given guidance on how to perform tasks.
6 Employees are given incentives for excellent performance

HIGH PERFORMING LEARNERS ONLY

3.6 Discuss/Evaluate/Analyse the impact (including positives/advantages and/or negatives/

disadvantages) of each leadership style.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 35 - 38 or the
Gr 12 Business Studies textbook issued to you for the solution

3.7. Suggest/Recommend situations in which each leadership style can be applied in the
workplace.

Leadership style Application/Situation

1. Bureaucratic • When routine work is being performed by employees.
• When managers ensure that procedures are always followed
2. Autocratic • accurately.
In crisis situations, e.g. in the case of unforeseen challenges.
• In emergencies, where there is limited time
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3. Charismatic • When convincing followers to pursue a particular direction.

4. Democratic • When new policies or procedures must be developed and the inputs of
all stakeholders are required.
• When the leader is new/inexperienced and depends on
experienced employees.
5. Laissez-Faire Sub max
• When (2)the organisation wants to introduce new/creative strategies.
• When employees are highly skilled/experienced.
• It can be used to lead field workers.

6. Transactional • When the business wants to maximize employee performance.

• When motivating workers to meet deadlines on short notice.

3.8. Discuss/Explain the following theories of management and leadership:

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 40 or the
Gr 12 Business Studies textbook issued to you for the solution

Leaders & Followers Situational Leadership Transformational Transitional

Leadership

3.9. Explain/Discuss the role of personal attitude in successful leadership.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 40 or the
Gr 12 Business Studies textbook issued to you for the solution

Fill in the missing word

• Positive attitude releases … potential.
• A leader's good/bad … can influence the success/failure of the business.
• Leaders must know their … and … to apply their leadership styles effectively.
• Great leaders understand that the right attitude will set the right …
• Leaders' attitude may influence employees'/teams' …
• Leaders should …the behaviour that they want to see in team members.
• Enthusiasm produces … in a leader.

HIGH PERFORMING LEARNERS ONLY

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4. Investment: Securities

4.1. Outline/Explain/Discuss the functions of the JSE.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 5 or the
Gr 12 Business Studies textbook issued to you for the solution

4.2. Investigate a range of available business investment opportunities.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 7 - 10 or the
Gr 12 Business Studies textbook issued to you for the solution

Unit trusts Shares Managed portfolio Call Deposits

RSA Retail Savings Bonds Fixed Property Mutual funds/Stokvels
Venture capital Debentures Retirement Annuities Fixed deposit

Identify the types of investment opportunity that is available for Sam in each statement below:
1 Masakhane savings scheme has invited Sam to join the scheme.
2 Interest is earned twice with this investment option.
3 Money can be withdrawn anytime with this investment option.
4 The bank must first be notified within a specific period of time before
money is withdrawn.
5 A fixed amount of money is invested and can only be withdrawn
after a predetermined period.

4.3. Outline/State/Describe/Explain/Discuss the following factors that should be considered

when making investment decisions:

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 5 - 6 or the
Gr 12 Business Studies textbook issued to you for the solution

Factors
Return of investment (ROI) Inflation rate Personal budget
Risk Taxation Investment planning factors
Investment term/period Liquidity Volatility/Fluctuations on investment markets

4.4. Explain/Discuss the various types of investments opportunities e.g. fixed property, stokvels,
managed portfolio and venture capital etc.
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Fixed Property Stokvels

• Buying a house/piece of land is usually • It is an informal savings scheme to which a
suitable as a long term investment only. relatively small group of people
• Return on property is earned in the form of contribute.
• Each member takes a turn to draw from
rental/sales/capital gains at a higher price
the scheme/fund/stokvels for their own
than what it was bought for (including the personal gain.
transfer costs and taxes). • No or Small return on investment, as
• The location/size of the property may also contributions are distributed monthly to
influence the growth in value over time. one of the members.

Managed portfolio Venture capital

• An investor instructs a financial • Venture capital is given by an
institution/bank/financial advisor to manage investor/businesses to start up/expand a
his/her various investments/assets in one business in return to have a share in the
portfolio. new/expanded business.
• If the portfolio does not perform well/as • Investor(s) should know the type of
expected, the portfolio/parts thereof may business/market/economic conditions
be changed with/without informing the before a business is bought/started.
investor.

4.5. Explain the risk factor of each type of investment opportunity.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 7 - 10 or
the Gr 12 Business Studies textbook issued to you for the solution

4.6 Explain/Discuss/Analyse/Evaluate (positives/advantages and/or negatives/

disadvantages) of the following forms of investment:

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 11 - 12 or
the Gr 12 Business Studies textbook issued to you for the solution

RSA Retail Savings Bonds Unit trusts

Fixed Deposit Ordinary Shares

4.7 Types of Shares

Ordinary Shares Preference Shares Bonus Shares Founders Shares

Statement Type of Share

1 Dividends vary from year to year according to profits made and are
determined by the company/board of directors
2 These types of shares receive dividends regardless of whether a profit is
made.
3 Issued as compensation for unpaid dividends
4 Issued the founders and incorporators/promoters of the company
5 A fixed rate of return is paid on this type of shares.
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4.8. Name/Outline/Explain/Discuss types of preference shares.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 14 or the
Gr 12 Business Studies textbook issued to you for the solution

4.9. Outline/State the rights of ordinary and preference shareholders.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 13 or the
Gr 12 Business Studies textbook issued to you for the solution

4.10. Differentiate/Distinguish between ordinary and preference shares.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 13 or the
Gr 12 Business Studies textbook issued to you for the solution

Complete the table below to show the differences:

Ordinary Shares Preference Shares
1. 1.
2. 2.
3. 3.
4. 4.

4.11. Define/Explain the meaning of debentures, dividends, capital gain, simple interest,
compound interest.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 16 or the
Gr 12 Business Studies textbook issued to you for the solution

Statement Concepts
1 Calculated on the original/principal amount invested.
2 The return on an investment in shares which is paid regularly by a
company to its shareholders.
3 Interest is calculated in every period on original/principal amount plus
interest.
4 The return on property/fixed assets/investments.
5 The lender/debenture holder agrees to lend money to the company
on certain conditions for a certain period
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4.12. Differentiate/Distinguish between simple interest and compound interest.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 16 or the
Gr 12 Business Studies textbook issued to you for the solution.

Complete the table below to show the differences

Simple Interest Compound Interest
1. 1.
2. 2.
3. 3.
4. 4.

4.13. Calculate simple and compound interest from given scenarios.

Read the scenario below and answer the questions that follow:
Ray wants to invest R30 000 in a fixed deposit for two years. She approached two banks. Saints
Bank offered her 12% simple interest per annum and Caprica Bank 12% compounded interest
per annum.

1. Calculate the interest amount Ray receive after two years if she invests with Saints Bank
2. Calculate the interest amount Ray will receive after two years if she invests with Caprica Ban
3. Recommend the best investment option for Ronnete. Motivate your answer.

1. Simple Interest Calculation 2. Compound Interest Calculation/s

Option 1
Formula: Interest = P x r x t
Year 1: R 30 000 x 12% = R 3 600
= R 30 000 x 12% x 2 years Year 2: R 33 600 x 12% = R 4 032
= R 7 200 Total interest:
[3 600 + 4 032] = R 7 632

3. Best investment option Option 2

Compound interest.
Formula: P x (1 + r)n
Motivation R30 000 x (1+12/100)2
Compound interest yields a higher interest of R 432.00 R30 000 x (1.12)2 =R 37 632
more than simple interest.
Compound interest allows Ray to earn interest on Total interest = R 37 632 – R 30 000
interest = R 7 632
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HIGH PERFORMING LEARNERS ONLY

5. Investment: Insurance

5.1. Define/Elaborate on the meaning of insurance

Meaning of insurance
• Insurance refers to cover for a possible event that may cause a specified loss/ damage.
• An agreement whereby the insurer undertakes to indemnify the insured in the event of a
specified loss/damage.
• The insured has to pay a premium for specified losses/damages covered.
• A contract between a person/business/insured requiring insurance cover and the insurance
company/insurer bearing the financial risk.

5.2. Explain/Elaborate on the meaning of the following insurance concepts:

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 23 – 24 or the
Gr 12 Business Studies textbook issued to you for the solution

1. Over Insurance 2. Under Insurance

3. Average clause 4. Re-instatement
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5.3. Name/Give examples of short term and long-term insurance.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 26 or
the Gr 12 Business Studies textbook issued to you for the solution

Complete the table below

Short-term Insurance Long-term Insurance
1.
2.
3.
4.

5.4. Name/State/Explain/Discuss the following principles of insurance:

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 26 or
the Gr 12 Business Studies textbook issued to you for the solution

Indemnification Security Utmost good faith Insurable Interest

5.5. Apply the average clause to calculate the compensation in the case of under-
insurance.

Calculations of average clause

• The insured amount is divided by the market value of the insured item and multiplied by
the total value/amount of the damages/loss.
• Insurance companies apply the following formula to determine the amount to be
paid out to the insured:

Formula: (Amount insured ÷ Market value) x damages

Amount insured x Amount of damages/loss

Value of insured item

Peter owns a thatched house valued at R 1 000 000. He insured his house with Pro-Cover
Insurers for R 800 000. A fire in the kitchen caused damages of R 30 000.

1 Calculate the amount that Pro-Cover Insurers will pay Peter to cover damages. Show
ALL calculations.

2 Explain to Peter the reason why he did not qualify for the full amount of damages
sustained.
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1. 2. Reasons for not qualifying for the full

Amount insured x Damages amount of damages
Value of insured item
• Peter insured his house for less (R800 000)
R 800 000 x R 30 000 than the market value
R 1 000 000 (R1 000 000).
• He was underinsured so the average clause
= R 24 000 had to be activated.
• He will only receive R24 000 for damages,
and not the full amount of the claim
(R30 000).

5.6. Discuss/Explain the advantages/importance of insurance.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 25 of
the Gr 12 Business Studies textbook issued to you for the solution

5.7. Explain the meaning of insurable and non-insurable risks.

Insurable Risks Non-Insurable Risks

• These risks are insured by insurance • These risks are not insured by insurance
companies. companies as insurance cost/risks are too
high/remains the responsibility of the
business.

5.8. Outline/State/Give examples of insurable and non-insurable risks.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 25 of
the Gr 12 Business Studies textbook issued to you for the solution

Complete the table below

Insurable Risks Non-Insurable Risks
1. 1.
2. 2.
3. 3.
4. 4.
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5.9. Explain/Elaborate on the meaning of compulsory insurance.

• Refers to any type of insurance an individual or business is legally required to buy.

• Compulsory insurance is mandatory for individuals and businesses that want to
engage in certain financially risky activities, such as operating an automobile or
operating a business with employees.

5.10. Discuss/Explain types of compulsory insurance e.g. Unemployment Insurance

Fund (UIF), Road Accident Fund (RAF)/Road Accident Benefit Scheme
(RABS)/Compensation for Occupational Injuries and Diseases Fund (COIDA).

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, 27 – 29 of
the Gr 12 Business Studies textbook issued to you for the solution

5.11. Explain the types of benefits paid out by the UIF.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 28 of
the Gr 12 Business Studies textbook issued to you for the solution

5.12. Differences between compulsory and non-compulsory insurance

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 29 of
the Gr 12 Business Studies textbook issued to you for the solution

HIGH PERFORMING LEARNERS ONLY

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6. Team Performance & Conflict Management

6.1. Outline/Explain/Discuss the criteria for successful team performance:

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 96 of
the Gr 12 Business Studies textbook issued to you for the solution

1. Interpersonal attitude and behaviour 2. Shared values

3. Communication 4. Collaboration

6.2. Outline/Explain/Discuss the characteristics of successful team performance.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 96 of
the Gr 12 Business Studies textbook issued to you for the solution

Fill in the missing word/s

1. Successful teams share a common … as team members are part of the process of
setting goals for the group.
2. Share a set of team … and implement group …
3. Teams value the contributions of … members and reach … on differences.
4. There is a climate of … and …
5. Team members enjoy open … and deal with items of …immediately.
6. Teams are … and members know the … for achieving their goals.
7. Teams pay attention to the … of the individual team members.
8. Successful teams have sound … relations.

6.3 Identify/Name/Discuss the following stages of team development from given

scenarios/statements:

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 96 of
the Gr 12 Business Studies textbook issued to you for the solution

1. Forming 2. Storming 3. Norming 4. Performing 5. Adjourning

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Identify the stages of team development illustrated in EACH of the following scenarios.
1 Team members have differences of opinion but resolve
them quickly in order to achieve their goals.
2 Teams must first complete the task before they dissolve
3 Team members work together to achieve a goal
4 Team members are not working together as they are
competing for the team leader's position.
5 Individuals gather information and impressions about each
other and the scope of the task and how to approach it.

6.4. State/Outline/Explain/Describe/Discuss causes of conflict in the workplace.

Poor management. Increase in workload & Inadequate training

unrealistic deadlines.
Unfair treatment at work Poor communication Poor working environment.
e.g. favoritism/ nepotism. between management
and workers.

6.5. Explain/Advise businesses on how they should handle conflict in the workplace
(Conflict resolution steps/techniques)

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 98 of
the Gr 12 Business Studies textbook issued to you for the solution

6.6. Differentiate between grievance and conflict.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 98 of
the Gr 12 Business Studies textbook issued to you for the solution

6.7. Explain/Discuss the correct procedures to deal with grievances in the workplace.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 99 of
the Gr 12 Business Studies textbook issued to you for the solution

6.8. Suggest/Recommend ways in which businesses can deal with difficult people/
personalities in the workplace.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 100 of
the Gr 12 Business Studies textbook issued to you for the solution

6.9 Explain/Suggest ways in which businesses can deal with difficult employees in the
workplace.

Refer to 2020 WCED Grade 12 Core Notes – Business Ventures & Roles, Pg. 99 of
the Gr 12 Business Studies textbook issued to you for the solution
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