Grade 12 · CAPS

Grade 12 Business Environments

Business Studies practice questions and a worked example

Grade 12 Business Environments covers the laws that businesses must follow and the strategies they use to respond to challenges. The questions here ask you to explain the purpose and impact of Acts such as the Skills Development Act, the Labour Relations Act, the Employment Equity Act, the Basic Conditions of Employment Act, COIDA, the BBBEE Act, the National Credit Act and the Consumer Protection Act. You also classify a business's challenges by environment, apply SWOT, PESTLE and Porter's Five Forces to a scenario, and discuss integration, intensive, diversification and defensive strategies. The questions follow the NSC paper format: short Section A items, scenario questions and a 40-mark essay, each with the marking guideline's answer.

Worked example

2.1 Name any FOUR consumer rights as stipulated in the Consumer Protection Act (CPA), 2008 (Act 68 of 2008).

Answer & explanation

Consumer rights as stipulated in the Consumer Protection Act/CPA - Right to choose - Right to privacy - Right to fair and honest dealings - Right to disclosure and information - Right to fair and responsible marketing - Right to fair value/good quality and safety - Right to accountability by suppliers - Right to fair/just and reasonable terms and conditions - Right of equality in the consumer market
The Consumer Protection Act (CPA) of 2008 outlines several rights to protect consumers. Here are four key rights: 1. **Right to choose**: Consumers have the freedom to select from a range of products and services. 2. **Right to privacy**: Consumers' personal information must be protected and not shared without consent. 3. **Right to fair and honest dealings**: Consumers should not be misled or deceived by businesses. 4. **Right to disclosure and information**: Consumers have the right to receive all necessary information about a product or service to make informed decisions. These rights ensure that consumers are treated fairly and can make informed choices in the marketplace.

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Business Environments

Question 1 of 3

1.1 Various options are provided as possible answers to the following questions. Choose the answer and write only the letter (A–D) next to the question numbers (1.1.1 to 1.1.5) in the ANSWER BOOK, e.g. 1.1.6 D. 1.1.1 This Act outlines the minimum requirements for the employment contract:
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Explore additional Grade 12 Business Environments questions.

  • 2
    1.2 Complete the following statements by using the word(s) provided in the list below. Write only the word(s) next to the question numbers (1.2.1 to 1.2.5) in the ANSWER BOOK. selection; weakness; public relations; BBBEE Act; learnerships; BEE; internships; threat; production; recruitment 1.2.1 Businesses provide … to employees through practical training opportunities that lead to a recognised qualification.
  • 3
    1.2 Complete the following statements by using the word(s) provided in the list below. Write only the word(s) next to the question numbers (1.2.1 to 1.2.5) in the ANSWER BOOK. selection; weakness; public relations; BBBEE Act; learnerships; BEE; internships; threat; production; recruitment 1.2.2 KB Transport is affected by an increase in the price of petrol. This is classified as a … in the SWOT analysis.
  • 4
    1.2 Complete the following statements by using the word(s) provided in the list below. Write only the word(s) next to the question numbers (1.2.1 to 1.2.5) in the ANSWER BOOK. selection; weakness; public relations; BBBEE Act; learnerships; BEE; internships; threat; production; recruitment 1.2.3 The … focused only on three pillars which excluded some previously disadvantaged people.
  • 5
    1.3 Choose a description from COLUMN B that matches a term in COLUMN A. Write only the letter (A–J) next to the question numbers (1.3.1 to 1.3.5) in the ANSWER BOOK, e.g. 1.3.6 K. COLUMN A 1.3.1 Consumer Protection Act (CPA), 2008 (Act 68 of 2008) COLUMN B A describes the duties that need to be performed for a certain post B adding new products that are unrelated to existing products appealing to new customers C aims to get the product right the first time D promotes customers' safety by protecting them from hazardous products E improves the use of the National Skills Fund F adding new products that are related to existing products appealing to new customers G promotes branded products that are preferred by customers H improves the supply of skills which directly benefit the country I describes the acceptable qualifications for a certain post J aims to provide a framework for organisational processes

Common mistakes

  • Quoting from the scenario without first naming the strategy, force or Act correctly. The marking guideline gives no mark for the motivation when the identification is wrong.
  • Giving more answers than the question asks for. When a number is given, such as FOUR, only the first four answers are marked.
  • Mixing up the business environments: the business has full control over the micro environment, limited control over the market environment and no control over the macro environment.

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Business Environments in other grades

Aligned to CAPS Grade 12 Business Studies — Business Environments. Curriculum source: CAPS for the FET Phase, Department of Basic Education.