Grade 12 Business Studies
Full Answer Memo
Simple, detailed answers for the full uploaded questi on bank
Note: A few prompts in the scan refer to diagrams or empty tables that were not fully visible. For
those, the answer is given in clear paragraph form using the most likely memo answer.
Grade 12 Business Studies Question Bank – Full Answer Memo
This memo answers the full question bank in simple language.
Where the scan showed a missing diagram or table, I gave the most likely answer in a normal paragraph
form.
1. Corporate Governance
1.1 Explain the term corporate governance. (2)
Corporate governance is the system and set of rules used to direct, control and manage a company in a
responsible and ethical way.
1.2 Explain how these principles of good corporate governance could be used to ensure that
Woolworths is acting ethically. (9)
Transparency:
Woolworths must be open and honest about its decisions, finances, risks and business activities. It should
publish accurate reports, disclose important information on time and communicate clearly with
stakeholders.
Independence:
The board should include independent directors who are able to make objective decisions without
favouritism or pressure. This helps stop corruption, bias and conflicts of interest.
Fairness:
Woolworths should treat all stakeholders fairly. This means fair prices for customers, fair treatment of
workers, honest dealings with suppliers and equal consideration of shareholder interests.
, 1.3 List three possible duties/responsibilities of the Woolworths company directors. (3)
1. To act in the best interests of the company.
2. To set goals, policies and the strategic direction of the business.
3. To make sure the company follows laws and good governance principles.
1.4 If the directors do not fulfil their duties, what negative consequences could this have for the
company? (4)
The business may make poor decisions and lose money.
Fraud or corruption may increase.
The company may face legal action or fines.
Its reputation and investor confidence may drop.
1.5 Suggest strategies Woolworths could use to ensure that directors fulfil their duties. (4)
Use regular board performance reviews.
Set clear duties, targets and accountability measures.
Use independent audits and board committees.
Train directors on the King Code, ethics and company law.
1.6 Which index identifies businesses listed on the JSE that focus on good corporate governance
principles? (2)
The FTSE/JSE Responsible Investment Index.
1.7 Complete the flow diagram below with reference to CSR.
A good CSR flow can be written as:
Identify stakeholder needs → set CSR goals → plan projects and budget → implement projects → monitor
results → report back and improve.
1.8 Identify FOUR of Woolworths’s stakeholders. (4)
Employees
Customers
Shareholders
Suppliers
1.9 Identify a demand that each of these stakeholders could make on Woolworths. (4)
Employees: fair pay, safe working conditions and training.
Customers: good quality products at fair prices.
Shareholders: growth, profit and good returns.
Suppliers: fair contracts and on-time payment.
, 1.10 What could Woolworths expect to gain from meeting these stakeholder demands? (3)
Better loyalty and stronger relationships
A better reputation and public image
Higher sales, support and long-term success
1.11 Discuss TWO challenges Woolworths could face while implementing its CSR strategy. (4)
High cost: CSR projects need money, staff and time, which can put pressure on profits.
Measuring impact: It can be hard to prove whether a CSR project is really making a difference.
1.12 What is the significance of the King Reports in the South African economy? (4)
The King Reports give South African businesses guidelines on ethical leadership, accountability and
sustainability. They help improve trust, reduce unethical behaviour, strengthen governance and attract
investors.
1.13 Assess how Pick n Pay could make use of the Triple Bottom Line approach to ensure
sustainability. (9)
People: Treat workers fairly, support communities, train staff and ensure customer wellbeing.
Planet: Reduce waste, save water and energy, use recyclable packaging and lower pollution.
Profit: Stay financially strong, control costs and grow in a way that can last long term.
Pick n Pay becomes more sustainable when it balances social, environmental and financial goals instead
of only chasing profit.
1.14 Discuss the purpose of the FTSE/JSE Responsible Investment Index. (3)
It identifies listed companies that perform well in environmental, social and governance areas. It helps
investors choose responsible businesses and encourages companies to improve sustainability.
1.15 Define sustainability. (2)
Sustainability means meeting present needs without harming the ability of future generations to meet their
needs.
1.16 List FOUR principles of good corporate governance that Shoprite Holdings should consider.
(4)
Accountability
Transparency
Responsibility
Fairness
1.17 Name THREE elements of the Triple Bottom Line / Integrated reporting. (3)
Economic / Profit
Social / People
, Environmental / Planet
2. Sustainability, Stakeholders and Entrepreneurship
2.1 Discuss the demands that these stakeholders would place on Shoprite Holdings. Suggest
how Shoprite could deliver on these demands.
Suppliers (4):
Suppliers want fair contracts, steady orders and payment on time. Shoprite can deliver by building good
supplier relationships, paying on agreed dates and communicating clearly.
Employees (4):
Employees want fair wages, job security, training and safe working conditions. Shoprite can deliver by
following labour laws, offering training and treating staff fairly.
Customers (4):
Customers want affordable prices, quality goods and good service. Shoprite can deliver through quality
control, fair pricing and quick, helpful service.
2.2 Develop possible criteria that Shoprite Holdings could use to measure the success of its
sustainability strategy. (3)
Lower waste, energy use or carbon emissions
Better customer and employee satisfaction
Improved profits and stronger brand image
2.3 State two responsibilities the directors of Edgars will have to ensure that Edcon achieves
the Group Vision. (2)
Set clear goals and strategy for the business
Monitor performance and make sure managers carry out the vision
2.4 Discuss how Edgars could use the Triple Bottom Line to achieve the Group Vision of Edcon.
(9)
Edgars can focus on people by training staff, improving customer service and supporting communities. It
can focus on the planet by cutting waste, using sustainable packaging and saving electricity. It can focus
on profit by improving efficiency, increasing sales and keeping the business financially stable. Using all
three helps the business grow in a balanced and responsible way.
Full Answer Memo
Simple, detailed answers for the full uploaded questi on bank
Note: A few prompts in the scan refer to diagrams or empty tables that were not fully visible. For
those, the answer is given in clear paragraph form using the most likely memo answer.
Grade 12 Business Studies Question Bank – Full Answer Memo
This memo answers the full question bank in simple language.
Where the scan showed a missing diagram or table, I gave the most likely answer in a normal paragraph
form.
1. Corporate Governance
1.1 Explain the term corporate governance. (2)
Corporate governance is the system and set of rules used to direct, control and manage a company in a
responsible and ethical way.
1.2 Explain how these principles of good corporate governance could be used to ensure that
Woolworths is acting ethically. (9)
Transparency:
Woolworths must be open and honest about its decisions, finances, risks and business activities. It should
publish accurate reports, disclose important information on time and communicate clearly with
stakeholders.
Independence:
The board should include independent directors who are able to make objective decisions without
favouritism or pressure. This helps stop corruption, bias and conflicts of interest.
Fairness:
Woolworths should treat all stakeholders fairly. This means fair prices for customers, fair treatment of
workers, honest dealings with suppliers and equal consideration of shareholder interests.
, 1.3 List three possible duties/responsibilities of the Woolworths company directors. (3)
1. To act in the best interests of the company.
2. To set goals, policies and the strategic direction of the business.
3. To make sure the company follows laws and good governance principles.
1.4 If the directors do not fulfil their duties, what negative consequences could this have for the
company? (4)
The business may make poor decisions and lose money.
Fraud or corruption may increase.
The company may face legal action or fines.
Its reputation and investor confidence may drop.
1.5 Suggest strategies Woolworths could use to ensure that directors fulfil their duties. (4)
Use regular board performance reviews.
Set clear duties, targets and accountability measures.
Use independent audits and board committees.
Train directors on the King Code, ethics and company law.
1.6 Which index identifies businesses listed on the JSE that focus on good corporate governance
principles? (2)
The FTSE/JSE Responsible Investment Index.
1.7 Complete the flow diagram below with reference to CSR.
A good CSR flow can be written as:
Identify stakeholder needs → set CSR goals → plan projects and budget → implement projects → monitor
results → report back and improve.
1.8 Identify FOUR of Woolworths’s stakeholders. (4)
Employees
Customers
Shareholders
Suppliers
1.9 Identify a demand that each of these stakeholders could make on Woolworths. (4)
Employees: fair pay, safe working conditions and training.
Customers: good quality products at fair prices.
Shareholders: growth, profit and good returns.
Suppliers: fair contracts and on-time payment.
, 1.10 What could Woolworths expect to gain from meeting these stakeholder demands? (3)
Better loyalty and stronger relationships
A better reputation and public image
Higher sales, support and long-term success
1.11 Discuss TWO challenges Woolworths could face while implementing its CSR strategy. (4)
High cost: CSR projects need money, staff and time, which can put pressure on profits.
Measuring impact: It can be hard to prove whether a CSR project is really making a difference.
1.12 What is the significance of the King Reports in the South African economy? (4)
The King Reports give South African businesses guidelines on ethical leadership, accountability and
sustainability. They help improve trust, reduce unethical behaviour, strengthen governance and attract
investors.
1.13 Assess how Pick n Pay could make use of the Triple Bottom Line approach to ensure
sustainability. (9)
People: Treat workers fairly, support communities, train staff and ensure customer wellbeing.
Planet: Reduce waste, save water and energy, use recyclable packaging and lower pollution.
Profit: Stay financially strong, control costs and grow in a way that can last long term.
Pick n Pay becomes more sustainable when it balances social, environmental and financial goals instead
of only chasing profit.
1.14 Discuss the purpose of the FTSE/JSE Responsible Investment Index. (3)
It identifies listed companies that perform well in environmental, social and governance areas. It helps
investors choose responsible businesses and encourages companies to improve sustainability.
1.15 Define sustainability. (2)
Sustainability means meeting present needs without harming the ability of future generations to meet their
needs.
1.16 List FOUR principles of good corporate governance that Shoprite Holdings should consider.
(4)
Accountability
Transparency
Responsibility
Fairness
1.17 Name THREE elements of the Triple Bottom Line / Integrated reporting. (3)
Economic / Profit
Social / People
, Environmental / Planet
2. Sustainability, Stakeholders and Entrepreneurship
2.1 Discuss the demands that these stakeholders would place on Shoprite Holdings. Suggest
how Shoprite could deliver on these demands.
Suppliers (4):
Suppliers want fair contracts, steady orders and payment on time. Shoprite can deliver by building good
supplier relationships, paying on agreed dates and communicating clearly.
Employees (4):
Employees want fair wages, job security, training and safe working conditions. Shoprite can deliver by
following labour laws, offering training and treating staff fairly.
Customers (4):
Customers want affordable prices, quality goods and good service. Shoprite can deliver through quality
control, fair pricing and quick, helpful service.
2.2 Develop possible criteria that Shoprite Holdings could use to measure the success of its
sustainability strategy. (3)
Lower waste, energy use or carbon emissions
Better customer and employee satisfaction
Improved profits and stronger brand image
2.3 State two responsibilities the directors of Edgars will have to ensure that Edcon achieves
the Group Vision. (2)
Set clear goals and strategy for the business
Monitor performance and make sure managers carry out the vision
2.4 Discuss how Edgars could use the Triple Bottom Line to achieve the Group Vision of Edcon.
(9)
Edgars can focus on people by training staff, improving customer service and supporting communities. It
can focus on the planet by cutting waste, using sustainable packaging and saving electricity. It can focus
on profit by improving efficiency, increasing sales and keeping the business financially stable. Using all
three helps the business grow in a balanced and responsible way.
