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4.1 State any FOUR consumer rights as stipulated in the National Credit Act (NCA), 2005 (Act 34 of 2005) - English General - NSC Business Studies - Question 4 - 2020 - Paper 1
Question 4
4.1 State any FOUR consumer rights as stipulated in the National Credit Act (NCA), 2005 (Act 34 of 2005). 4.2 Identify the force of Porter's Five Forces model that ... show full transcript
Worked Solution & Example Answer:4.1 State any FOUR consumer rights as stipulated in the National Credit Act (NCA), 2005 (Act 34 of 2005) - English General - NSC Business Studies - Question 4 - 2020 - Paper 1
Step 1
State any FOUR consumer rights as stipulated in the National Credit Act (NCA), 2005 (Act 34 of 2005).
Answer
Consumers have the right to:
- Apply for credit and to be free from discrimination.
- Obtain reasons for credit being refused.
- Receive pre-agreement documentation before concluding any credit transaction.
- Fair and responsible marketing.
Step 2
Identify the force of Porter's Five Forces model that applies to Louisa's Hair Salon in EACH statement below: 4.2.1 Lwazi opened a new hair salon across the street offering services at lower prices than Louisa's Hair Salon.
Answer
The force applicable here is 'Threat of New Entrants'. Lwazi's new salon posing a lower price offers a direct competitive threat to Louisa's Hair Salon, as it may attract their existing customers.
Step 3
4.2.2 Louisa's Hair Salon is highly profitable and attracts many new entrepreneurs to enter this market.
Answer
This corresponds to 'Threat of New Entrants' as well. The high profitability of Louisa's Hair Salon invites new entrepreneurs to enter the market, thereby increasing competition.
Step 4
Explain TWO types of defensive strategies.
Answer
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Diversification: This strategy involves acquiring or merging with other businesses, or broadening the product/service range to reduce risks associated with declining sales due to competition.
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Retrenchment: This is the process of reducing costs by laying off employees or selling off non-essential business assets, which serves to strengthen the company's financial position during tough times.
Step 5
Step 6
Advise the management of MC on any other TWO ways in which they can comply with the Act identified in QUESTION 4.4.1.
Answer
- Ensure that all employees are adequately trained on health and safety protocols, promoting a culture of safety in the workplace.
- Regularly maintain and inspect workplace equipment and machinery to prevent workplace accidents and ensure a safe working environment.
Step 7
Step 8
Outline the benefits of induction for businesses.
Answer
The benefits of a well-structured induction programme include:
- Enhanced employee understanding of their roles, leading to improved performance and productivity.
- Reduction in employee anxiety and increased confidence, resulting in better retention rates.
Step 9
Explain the placement procedure as a human resource activity.
Answer
The placement process involves various steps, such as:
- Evaluating candidates based on their skills, qualifications, and organizational needs.
- Assigning roles according to their competencies to ensure alignment within the company.
Step 10
Step 11
4.7.2 Explain other roles of quality circles as part of continuous improvement to the organisation.
Answer
Quality circles also contribute by:
- Identifying improvement opportunities in work processes and enhancing productivity.
- Facilitating employee engagement and fostering a culture of continuous improvement throughout the organization.
Step 12
Suggest ways in which total quality management (TQM) can reduce the cost of quality.
Answer
TQM can reduce costs by:
- Enhancing customer satisfaction leading to repeat business and customer loyalty, thus reducing costs related to acquiring new customers.
- Minimizing waste and errors in production processes, which decreases operational costs.