Business Studies Grade 12 Paper 1 Final Exam Preparation 1
Business Studies Grade 12 Paper 1
Question
This Act ensures that a wider group of previously disadvantaged people have access to ownership and management positions in a business:
A. Consumer Protection Act (CPA), 2008 (Act 68 of 2008)
B. Broad-Based Black Economic Empowerment Act (BBBEE), 2003 (Act 53 of 2003)
C. Compensation for Occupational Injuries and Diseases Act (COIDA), 1997 (Act 61 of 1997)
D. Labour Relations Act (LRA), 1995 (Act 66 of 1995)
The answer is: B
Question
Which ONE of the following businesses can be classified under the secondary sector?
A. Dundee Gold Mine
B. Shop and Pay Supermarket
C. Villa Attorneys
D. Qubeka Handbags Manufacturers
The answer is: D
Question
The role of SETAs:
A. Register learnership programmes
B. Train employees in the workplace
C. Provide employment opportunities
D. Promote skilled employees
The answer is: A
Question
An example of long-term insurance:
A. Money in transit
B. Vehicle insurance
C. Endowment policy
D. Personal liability
The answer is: C
Question
When designing a multimedia presentation, a presenter must:
A. Prepare for the feedback session
B. Limit the amount of information on each slide
C. Prepare a suitable venue
D. Practise in front of someone to get an opinion
The answer is: B
Question
The value of Sipho’s stock is R40 000 and he insured it for R30 000. Damage caused by fire amounted to R8 000. Sipho will receive … as compensation.
A. R6 000
B. R8 000
C. R3 000
D. R4 000
The answer is: A
To calculate the compensation Sipho will receive, we can use the principle of underinsurance. Since Sipho insured his stock for less than its full value, he won’t be compensated for the full damage amount but rather a proportion of it.

Question
Benny promotes … by employing people from diverse backgrounds in his supermarket.
A. Accountability
B. Discrimination
C. Social rights
D. Inclusivity
The answer is: D
Question
ONE of the steps that businesses may consider when handling conflict in the workplace:
A. Implement disciplinary procedures
B. Provide recreational facilities
C. Select an appropriate solution
D. Provide fringe benefits
The answer is: C
Question
The human resources activity which ensures that the skills and competencies of newly appointed employees match the requirements of the job:
A. Selection
B. Placement
C. Recruitment
D. Training
The answer is: B
Question
Sara Designers used … to recruit possible candidates amongst existing employees.
A. Employment agencies
B. Educational institutions
C. Notice boards
D. Local newspapers
The answer is: C
Question
The aim of this Act is to protect consumers against unfair reckless lending by businesses:
A. Consumer Protection Act (CPA), 2008 (Act 68 of 2008)
B. Employment Equity Act (EEA), 1998 (Act 55 of 1998)
C. National Credit Act (NCA), 2005 (Act 34 of 2005)
D. Labour Relations Act (LRA), 1995 (Act 66 of 1995)
The answer is: C
Question
Teddy Car Manufacturers implemented the … integration strategy when they bought Tail Motors Spares.
A. Horizontal
B. Intensive
C. Forward
D. Backward
The answer is: C/D
Question
ABC Paints operate in the … sector as they specialise in the manufacturing of paint.
A. Secondary
B. Primary
C. Tertiary
D. Economic
The answer is: A
Question
William, the manager of Eden Supermarket, applies the … leadership style when delegating tasks to followers without supervision.
A. Autocratic
B. Bureaucratic
C. Laissez-faire/Free-reign
D. Charismatic
The answer is: C
Question
The … company provides essential services such as water and electricity at reasonable prices.
A. Personal liability
B. State-owned
C. Public
D. Private
The answer is: B
Question
An example of a non-verbal presentation is information in the form of a/an …
A. Written report
B. Data projector
C. Video conferencing
D. Oral report
The answer is: A
Question
This problem-solving technique requires each employee to first generate his/her own ideas and then share them with members:
A. Brainstorming
B. Force-field analysis
C. Empty chair technique
D. Nominal group technique
The answer is: D
Question
Goal Ltd contributes towards the well-being of their employees by …
A. Giving them the right to freedom of association
B. Providing recreational facilities
C. Allowing them longer break intervals despite tight deadlines
D. Providing transport to all employees regardless of working hours
The answer is: B
Question
The … function ensures reliable capturing and storing of data/information.
A. Purchasing
B. Human resource
C. Administration
D. Production
The answer is: C
Question
The process of matching a new employee’s skills and abilities with the requirements of a job is known as …
A. Placement
B. Selection
C. Recruitment
D. Training
The answer is: A
Question
This Act requires businesses to check customers’ financial backgrounds before granting loans to them:
A. Consumer Protection Act (CPA), 2008 (Act 68 of 2008)
B. Labour Relations Act (LRA), 1995 (Act 66 of 1995)
C. Employment Equity Act (EEA), 1998 (Act 55 of 1998)
D. National Credit Act (NCA), 2005 (Act 34 of 2005)
The answer is: D
Question
Businesses may lose many clients when their prices are increased because of an increase in the interest rate. This is an example of the … factor as a PESTLE element.
A. Technological
B. Economic
C. Physical
D. Environmental
The answer is: B
Question
Golden Supermarket operates in the … sector as they sell groceries to consumers.
A. Secondary
B. Tertiary
C. Primary
D. Public
The answer is: B
Question
Zaza Hospice is an example of a … company as it receives donations that enable it to take care of terminally ill people.
A. Non-profit
B. Public
C. Private
D. State-owned
The answer is: A
Question
Gugu Enterprises invested R5 000 for three years at 12% simple interest per year. They will receive an amount of … as interest at the end of the investment period.
A. R6 800
B. R2 024
C. R1 800
D. R1 200
The answer is: C

Question
Suresh applied the … leadership theory when he inspired and motivated his team to change their perceptions of their work.
A. Leaders and followers
B. Transactional
C. Situational
D. Transformational
The answer is: D
Question
A business requests a panel of experts to complete a set of questionnaires to solve a complex problem. This refers to …
A. A brainstorming session
B. The Delphi technique
C. The empty-chair technique
D. Forced combinations
The answer is: B
Question
Paul’s right to … was violated when the manager disclosed his personal problems to other staff members without his permission.
A. Safety
B. Information
C. Privacy
D. Dignity
The answer is: C
Question
The … outlines the minimum requirements that a human resources manager must consider when a salary package is offered to a new employee.
A. Skills Development Act
B. Labour Relations Act
C. Employment Equity Act
D. Basic Conditions of Employment Act
The answer is: D
Question
The … function uses an aggressive advertising campaign to increase sales.
A. Marketing
B. Public relations
C. Administration
D. Financial
The answer is: A
Question
Cosmetics Ltd complied with the … by providing the same work opportunities for people who are physically challenged.
A. Basic Conditions of Employment Act (BCEA), 1997 (Act 75 of 1997)
B. Employment Equity Act (EEA), 1998 (Act 55 of 1998)
C. Labour Relations Act (LRA), 1995 (Act 66 of 1995)
D. Compensation for Occupational Injuries and Diseases Amendment Act (COIDA), 1997 (Act 61 of 1997)
The answer is: B
Question
Workers are entitled to a meal break of … minutes after five continuous hours of work.
A. 90
B. 45
C. 60
D. 15
The answer is: C
Question
Businesses add unrelated products to their existing products which may appeal to new customers. This is an example of a … diversification strategy.
A. Conglomerate
B. Horizontal
C. Concentric
D. Diagonal
The answer is: A
Question
Mano and Sons used the … recruitment method when they advertised a vacancy on their business noticeboard.
A. Agencies
B. Online
C. Internal
D. External
The answer is: C
Question
The implementation of change on a wider scale by Themba Constructions is the … step of the PDCA model.
A. Plan
B. Do
C. Check
D. Act
The answer is: D
Question
Employees are protected by the … against workplace illnesses and accidents that may occur while performing their duties.
A. Consumer Protection Act (CPA), 2008 (Act 68 of 2008)
B. Employment Equity Act (EEA), 1998 (Act 55 of 1998)
C. Compensation for Occupational Injuries and Diseases Amendment Act (COIDA), 1997 (Act 61 of 1997)
D. Labour Relations Act (LRA), 1995 (Act 66 of 1995)
The answer is: C
Question
Moggy Transporters operate in the … sector as they deliver products to various customers.
A. Primary
B. Economic
C. Secondary
D. Tertiary
The answer is: D
Question
A business that takes over its suppliers to reduce the risk of dependency applies the … integration strategy.
A. Forward vertical
B. Backward vertical
C. Horizontal
D. Conglomerate
The answer is: B
Question
The purpose of an interview is to …
A. Evaluate the skills and personal characteristics of the applicant
B. Avoid asking discriminatory types of questions
C. Prepare the venue for the interview
D. Invite possible candidates to apply for the vacancy
The answer is: A
Question
Businesses use … to continuously improve on processes and systems in order to satisfy customers’ needs beyond their expectations.
A. Quality management
B. Quality circles
C. Total quality management
D. Quality assurance
The answer is: C
Question
This Act creates a framework for acceptable employment practices and safety regulations in the workplace:
A. Basic Conditions of Employment Act (BCEA), 1997 (Act 75 of 1997)
B. Compensation for Occupational Injuries and Diseases Amendment Act (COIDA), 1997 (Act 61 of 1997)
C. Consumer Protection Act (CPA), 2008 (Act 68 of 2008)
D. Broad-Based Black Economic Empowerment Act (BBBEE), 2003 (Act 53 of 2003)
The answer is: B
Question
Bavaro Limited used … as a BBBEE pillar when they requested their black employees to participate in the decision-making process.
A. Ownership
B. Enterprise and supplier development
C. Skills development
D. Management control
The answer is: D
Question
Dyna Auto Motors operate in the … sector as they manufacture luxury cars.
A. Economic
B. Secondary
C. Primary
D. Tertiary
The answer is: B
Question
The process of matching an employee’s skills and abilities with the requirements of a job:
A. Recruitment
B. Selection
C. Placement
D. Induction
The answer is: C
Question
The … function is responsible for keeping documents orderly and in a safe place.
A. Administration
B. Purchasing
C. General management
D. Public relations
The answer is: A
Question
This Act promotes comprehensive safety regulations for employers and employees in the workplace:
A. Skills Development Act (SDA), 1998 (Act 97 of 1998)
B. Consumer Protection Act (CPA), 2008 (Act 68 of 2008)
C. Labour Relations Act (LRA), 1995 (Act 66 of 1995)
D. Compensation for Occupational Injuries and Diseases Amendment Act, 1997 (Act 61 of 1997)
The answer is: D
Question
Sue Stationery applied the … diversification strategy when they added cleaning materials to their product range that could appeal to new customers.
A. Concentric
B. Horizontal
C. Conglomerate
D. Vertical
The answer is: C
Question
The cashiers at Sunshine Supermarket lack the skill of how to operate the new cash registers. This is an example of a/an … in a SWOT analysis.
A. Strength
B. Weakness
C. Opportunity
D. Threat
The answer is: B
Question
Businesses may use … as a source of internal recruitment to advertise available vacancies.
A. Word of mouth
B. Professional associations
C. Employment agencies
D. Networking
The answer is: A
Question
KB Manufacturers have regular control checks and procedures in place to prevent product defects. This refers to … as a total quality management element.
A. Adequate financing and capacity
B. Continuous skills development
C. Monitoring and evaluation of quality processes
D. Total client satisfaction
The answer is: C
Question
This Act outlines the minimum requirements for the employment contract:
A. Consumer Protection Act (CPA), 2008 (Act 68 of 2008)
B. Employment Equity Act (EEA), 1998 (Act 55 of 1998)
C. Basic Conditions of Employment Act (BCEA), 1997 (Act 75 of 1997)
D. Skills Development Act (SDA), 1998 (Act 97 of 1998)
The answer is: C
Question
The Compensation for Occupational Injuries and Diseases Amendment Act (COIDA), 1997 (Act 61 of 1997) promotes …
A. Consultation in the workplace.
B. Safety in the workplace.
C. Employees’ rights in the workplace.
D. Diversity in the workplace.
The answer is: B
Question
A social factor of the PESTLE analysis posing a challenge to Rashid Carpentry is that …
A. Customers are unable to afford their products due to low-income levels.
B. Costs involved in obtaining a trading licence are high.
C. Employees are unskilled to operate new equipment.
D. Measures to dispose of their waste are expensive.
The answer is: A
Question
Businesses are required to contribute to the … fund as a compulsory fringe benefit.
A. Pension
B. Medical aid
C. Provident
D. Unemployment insurance
The answer is: D
Question
Astra Limited implements continuous skills development as a total quality management (TQM) element when …
A. Applying procedures to reduce defects in machinery.
B. Using the human resources department to address training needs.
C. Sharing their strategies with competitors.
D. Offering trained employees better incentives.
The answer is: B
Question
This Act protects employers from a financial burden should employees be involved in an accident at the workplace:
A. Consumer Protection Act, 2008 (Act 68 of 2008)
B. Skills Development Act (SDA), 1998 (Act 97 of 1998)
C. Compensation for Occupational Injuries and Diseases Act (COIDA), 1997 (Act 61 of 1997)
D. Labour Relations Act (LRA), 1995 (Act 66 of 1995)
The answer is: C
Question
Vusi, a vegetable farmer, implemented the … integration strategy when he bought the fruit and vegetable stall that sells his products.
A. Backward
B. Forward
C. Intensive
D. Horizontal
The answer is: B
Question
Khanya Paints operates in the … sector as they specialise in the manufacturing of paint.
A. Secondary
B. Primary
C. Tertiary
D. Economic
The answer is: A
Question
The human resources activity which ensures that all CVs received are evaluated against pre-determined criteria:
A. Training
B. Selection
C. Placement
D. Recruitment
The answer is: B
Question
The implementation of change on a smaller scale by Thembi Cosmetics, is the … step of the PDCA model.
A. Plan
B. Act
C. Check
D. Do
The answer is: D
4o
Question
This Act clarifies the transfer of employment contracts between existing and new employers:
A. Employment Equity Act (EEA), 1998 (Act 55 of 1998)
B. Broad-Based Black Economic Empowerment Act (BBBEE), 2003 (Act 53 of 2003)
C. Labour Relations Act (LRA), 1995 (Act 66 of 1995)
D. Skills Development Act (SDA), 1998 (Act 97 of 1998)
The answer is: C
Question
Trade agreements have prevented Ashkara (Pty) Ltd from importing some products from other countries. This is a challenge in the … environment.
A. Technological
B. Political
C. Social
D. Economical
The answer is: B
Question
Hanna Manufacturers produces quality furniture in the … sector.
A. Primary
B. Tertiary
C. Social
D. Secondary
The answer is: D
Question
Businesses may use … as a source of internal recruitment to advertise available vacancies.
A. The intranet
B. Recruitment agencies
C. Billboards
D. The printed media
The answer is: A
Question
Blue Sky Builders has a Human Resources department dedicated to skills training and development. This is an example of … as an element of total quality management.
A. Adequate financing and capacity
B. Continuous skills development
C. Monitoring and evaluation of quality processes
D. Continuous improvement to processes and systems
The answer is: B
4o
Question
This Act ensures that transformation takes place in the workplace through the implementation of affirmative action.
A. Skills Development Act (SDA), 1998 (Act 97 of 1998)
B. Labour Relations Act (LRA), 1995 (Act 66 of 1995)
C. Employment Equity Act (EEA), 1998 (Act 55 of 1998)
D. Basic Conditions of Employment Act (BCEA), 1997 (Act 75 of 1997)
The answer is: C
Question
Villa Transporters operate in the … sector, as they deliver raw materials to ABC manufacturers.
A. Economic
B. Primary
C. Secondary
D. Tertiary
The answer is: D
Question
Jimmy Motor Spares implemented the … integration strategy when they bought Sky Car Parts Manufacturer.
A. Intensive
B. Horizontal
C. Backward
D. Forward
The answer is: C
Question
Menzi (Pty) Ltd uses the … procedure when conducting interviews to identify the most suitable applicant.
A. Selection
B. Induction
C. Recruitment
D. Placement
The answer is: A
Question
This function is responsible for ensuring that products meet customers’ requirements by being safe, reliable, and durable.
A. Marketing
B. Financial
C. Purchasing
D. Production
The answer is: D