POSSIBLE EXAMINATION QUESTIONS AND ANSWERS

Section A

1. Name the four role players in the economic cycle that would be involved in the production of a pair of jeans and explain the contribution they each make to the economy.                                 [8 marks]

2. What do you call the point where the demand curve and supply curve meet and what does that point tell you?                                                                                                                            [2 marks]

3. Name one positive and one negative effect of strike action and stayaways.                    [2 marks]

4. What are the two sides to a budget?                                                                                  [2 marks]

5. Savings are important. How would your savings contribute to economic prosperity and wealth?

                                                                                                                                                [3 marks]

6. Explain what productivity is.                                                                                               [1 mark]

7. What does SMMEs stand for?                                                                                           [1 mark]

8. Name two benefits of selling on credit.                                                                              [2 marks]

9. Explain what a survivalist microenterprise in the informal sector is and state why it does not contribute to wealth creation.                                                                                                           [2 marks]

10. Name two industries that form part of the manufacturing sector.                                   [2 marks]

                                                                                                                                    [Total: 25 marks]

 

Section B

11. The following transactions took place at the premises of Too Beautiful Nursery.

 

Date	Source document	Transaction
01 August 2010	Receipt 01	The owner, P Azalia, makes a cash contribution to the business of R40 000
01 August 2010	Cheque 3050	The business buys trading stock from Big Tree Wholesalers to the value of R2 500
03 August 2010	Cash register roll CRR01	Cash sales deposited into bank account, R3 000
04 August 2010	Cheque 3051	The business buys trading stock from Malan Seuns to the value of R8 000
05 August 2010	Cheque 3052	Writes out a cheque to pay rental, R6 000
05 August 2010	Cheque 3053	Writes out a cheque as a donation to Greenpeace, R500
07 August 2010	Cash register roll CRR02	Cash sales deposited into bank account, R9 000
10 August 2010	Cheque 3054	The business buys trading stock from Big Tree Wholesalers to the value of R15 000
12 August 2010	Cheque 3055	Buys consumables to the value of R1 500 from Kit Kat Stores
15 August 2010	Receipt 02	Receives rental from Seeds-R-Us for the use of the storeroom, R2 500
18 August 2010	Cash Register Roll CRR03	Cash sales deposited into bank account, R7 500
20 August 2010	Cheque 3056	P Azalia takes R2 500 drawings to pay his car repairs
21 August 2010	Cheque 3057	Buys trading stock from Malan Seuns to the value of R15 000
25 August 2010	Cheque 3058	Pays the salary of Betty Bloom, R6 000
28 August 2010	Cheque 3059	Pays the water and electricity, R1 200, to Ekhuruleni Metro
29 August 2010	Cheque 3060	Pays the telephone account, R350, to Telkom

Too Beautiful Nursery has a markup of 50%.

 

a) Enter these cash transactions into the appropriate journals.                      [½ x 16 = 8 marks]

b) Close the journals at the end of the month.                                                [½ x 8 = 4 marks]

c) Post the journal amounts to the general ledger.                                         [½ x 13 = 6½ marks]

d) Draw up a trial balance.                                                                              [½ x 13 = 6½ marks]

                                                                                                                        [Total: 25 marks]

Suggested Solutions

 

Question number	Possible marks	Solution
Section A	25	1. Producers: produce the cotton and sell it to the manufacturers of the jeans who pay them for it. Manufacturers: use the cotton to make fabric to produce jeans. They sell the jeans they produce to the retailers and use the money they get paid to buy more cotton from producers and to produce more jeans. Retailers: sell the jeans to consumers and use the money they get to buy more jeans from manufacturers. Consumers: buy the jeans; the money they pay for the jeans flows into the economy.                                                                    [8 marks] 2. Equilibrium, where the demand and the supply are equal. [2 marks] 3. Positive effects: Benefits and higher salaries for workers; transformation of the workplace; higher disposable income for workers; better working conditions; rights for workers. (any one) Negative effects: Loss of production, smaller profits by employers; appearance of labour instability; inflation of prices of goods and services. (any one)                                                                 [2 marks] 4. Income and expense sides.                                                [2 marks] 5. Savings help to keep inflation down. Savings put more money into the economy to bring about economic growth. Savings help people to be less dependent on Government upon retirement, and allow them to still participate in the economy. Savings prevent people from entering into debt. Savings help people be prepared for unforeseen circumstances. (any three).                                                                              [3 marks] 6. Productivity refers to the number of units of a product or service that can be produced as output of the production process.     [1 mark] 7. SMMEs stands for small, medium and microenterprises.     [1 mark]                       8. Customers will be more likely to buy from someone who is willing to extend credit to them than from someone who only demands cash. Offering credit means that you gain goodwill and loyalty from your customers.                                                                             [2 marks] 9. A survivalist microenterprise in the informal sector is one undertaken by an unemployed person that generates an income below the poverty line. It keeps the business owner and his or her family alive. It does not increase the living standards of the owners or their family and therefore does not create wealth.                  [2 marks] 10. Motor industry, textiles, metals beneficiation, chemicals, ICT and electronics, and agricultural processing (any two).                 [2 marks]

 

Section B

 

CASH RECEIPTS JOURNAL OF TOO BEAUTIFUL NURSERY FOR THE MONTH ENDED AUGUST 2010
Source doc	Date	Details	Fol	Analysis of receipts	Bank	Sales	Cost of sales	Sundry accounts
								Amount	Fol	Details
01	1	P Azalia		40 000	40 000			40 000	B1	Capital
CRR01	3	Cash sales		3 000	3 000	3 000	2 000
CRR02	7	Cash sales		9 000	9 000	9 000	6 000
02	15	Seeds-R-Us		2 500	2 500			2 500	N3	Rental income
CRR03	18	Cash sales		7 500	7 500	7 500	5 000
					62 000	19 500	13 000	42 500

                                                                                                                        B2                N1                    N2

 

 

CASH PAYMENTS JOURNAL OF TOO BEAUTIFUL NURSERY FOR THE MONTH ENDED AUGUST 2010
Source doc	Date	Details	Fol	Bank	Trading stock	Salaries	Sundry accounts
							Amount	Fol	Details
3050	1	Big Tree Wholesalers		2 500	2 500
3051	4	Malan Seuns		8 000	8 000
3052	5	Cash		6 000			6 000	N5	Rental expense
3053	5	Greenpeace		500			500	N6	Donation
3054	10	Big Tree Wholesalers		15 000	15 000
3055	12	Kit Kat Stores		1 500			1 500	N7	Consumables
3056	20	P Azalia		2 500			2 500	B4	Drawings
3057	21	Malan Seuns		15 000	15 000
3058	25	Betty Bloom		6 000		6 000
3059	28	Ekhuruleni Metro		1 200			1 200	N9	Water and electricity
3060	29	Telkom		350			350	N8	Telephone
				58 550	40 500	6 000	12 050

                                                                                              B2                    B3                      N4

 

GENERAL LEDGER OF TOO BEAUTIFUL NURSERY

BALANCE SHEET ACCOUNTS

Dr                                                                     Capital B1                                                                       Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
					August	01	Bank	CRJ	40 000

Dr                                                                       Bank B2                                                                         Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
August	31	Sundry accounts	CRJ	62 000	August	31	Sundry accounts	CPJ	58 550
							Balance	c/o	3 450
				62 000					62 000
Sept	1	Balance	b/d	3 450

Dr                                                                           Trading stock B3                                                                 Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
August	31	Bank	CPJ	40 500	August	31	Cost of sales	CRJ	13 000
							Balance	c/o	27 500
				30 050					30 050
Sept	1	Balance	b/d	27 500

Dr                                                                                    Drawings B4                                                                Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
August	20	Bank	CPJ	2 500

 

NOMINAL ACCOUNTS

Dr                                                                      Sales N1                                                                       Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
					August	31	Bank	CRJ	19 500

Dr                                                                      Cost of sales N2                                                          Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
August	31	Trading stock		13 000

Dr                                                                                  Rental income N3                                                         Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
					August	15	Bank	CRJ	2 500

Dr                                                                     Salaries N4                                                                      Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
August	31	Bank	CPJ	6 000

Dr                                                                     Rental expense N5                                                           Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
August	5	Bank	CPJ	6 000

Dr                                                                     Donation N6                                                                    Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
August	5	Bank	CPJ	500

Dr                                                                     Consumables N7                                                             Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
August	12	Bank	CPJ	1 500

Dr                                                                     Telephone N8                                                                   Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
August	29	Bank	CPJ	350

Dr                                                                     Water and electricity N9                                                              Cr

Month	Day	Details	Fol	Amount	Month	Day	Details	Fol	Amount
August	28	Bank	CPJ	1 200

 

TRIAL BALANCE OF TOO BEAUTIFUL NURSERY

ON 31 AUGUST 2010

BALANCE SHEET ACCOUNTS SECTION	FOL	DEBIT	CREDIT
Capital	B1		40 000
Bank	B2	3 450
Trading stock	B3	27 500
Drawings	B4	2 500
NOMINAL ACCOUNT SECTION
Sales	N1		19 500
Cost of sales	N2	13 000
Rental income	N3		2 500
Salaries	N4	6 000
Rental expense	N5	6 000
Donation	N6	500
Consumables	N7	1 500
Telephone	N8	350
Water and electricity	N9	1 200
		62 000	62 000

 

GRADE 9 EMS

 

 

SECTION A: ACCOUNTING

 

Question 1.

 

Use the information given to draw up the following books of “Surf Repairs”.

 

Cash Receipts Journal: columns for analysis of receipts, bank, current income and sundry accounts.

 

Cash Payments Journal: columns for analysis of payments bank, material costs, wages, stationary and sundry accounts

 

Once completed, total the journal columns

(40)

Question 2.

 

Use the information provided to show the effect on the accounting equation

(25)

INFORMATION

 

P Henry has a small service business, “Surf Repair”, that repairs surf boards,

                                     

October …

 

1. Owner P Henry made a  capital contribution of R70 000 (Receipt 1)
2. Repaired the following for “Corner Surf Shop”. and issued them with a receipt:
   Short board                 R350
                           Long board                  R600
                           Body board                 R150
                           Paddle ski                   R420  
               Purchased Stationery from “Office Assist”, R200 (Cheque Counterfoil 1)
   4          Purchased consumable from “HG Hardware”, R400
   7          Bought material for cash at “Makro” R600
   10        Paid rental for factory space, R1250
   10        Repaired 12 surfboards for “Corner Surf Shop”  R3000
   11        Paid the wages, R1250
   22        Received two long boards to be repaired from “Second Hand Surf”, R1100

1. Purchased fibreglass to repair the boards from “Surf Trader”, R900
2. Repaired three body boards for various customers, received R700 in cash
   Paid the wages, R1250
    
    
   Question 3:
    
   3.1 If a computer is bought for R3500 and then sold again, applying a 35% mark up, what will the selling price be?                                                                           (5)
   ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
    
   3.2 If a bicycle is sold for R12000 and the retailer operates using a 30% mark up, calculate what he paid for the bike?                                                                                                                                                                                                                (5                                                                                                        
   Section A: [75]         
   SECTION B. ECONOMICS:
    
   Question 4:
    
   4.1 Draw and label the circular flow diagram showing all the necessary labels and arrows for the flow of income and production.                                                                                                                                                                                                          (10)
    
   
   
    
   Read the article below and answer the questions that follow

   NISSAN UNVEILS "LEAF" - THE WORLD'S
   FIRST ELECTRIC CAR DESIGNED FOR AFFORDABILITY
   AND REAL-WORLD REQUIREMENTS
   Event ushers in a new era for Nissan and a new era for mobility

   
   YOKOHAMA, (Aug. 2, 2009) - Nissan Motor Co., Ltd. today unveiled Nissan LEAF, the world's first affordable, zero-emission car. Designed specifically for a lithium-ion battery-powered chassis, Nissan LEAF is a medium-size hatchback that comfortably seats five adults and has a range of more than 160km (100 miles) to satisfy real-world consumer requirements.
   NISSAN LEAF
   Slated for launch in late 2010 in Japan, the United States, and Europe, Nissan LEAF ushers in a new era of mobility - the zero-emission era. The car is the embodiment of Nissan's radical, transformative vision for the future and the culmination of decades of investment and research.
   "Nissan LEAF is a tremendous accomplishment - one in which all Nissan employees can take great pride," said Nissan President and CEO Carlos Ghosn. "We have been working tirelessly to make this day a reality - the unveiling of a real-world car that has zero - not simply reduced - emissions. It's the first step in what is sure to be an exciting journey - for people all over the world, for Nissan and for the industry."
   Key characteristics of the LEAF include:
   1) Zero-emission power train and platform
   2) Affordable pricing
   3) Distinctive design
   4) Real-world range autonomy - 160km (100 miles)
   5) Connected Mobility: Advanced intelligent transportation (IT) system
   The "LEAF" name is a significant statement about the car itself. Just as leaves purify the air in nature, so Nissan LEAF purifies mobility by taking emissions out of the driving experience. Pricing details will be announced closer to start of sales in late 2010; however, the company expects the car to be competitively priced in the range of a well-equipped C-segment vehicle. Additionally, Nissan LEAF is expected to qualify for an array of significant local, regional and national tax breaks and incentives in markets around the world. As an added benefit, because the vehicle has less mechanical complexity than a traditional gasoline-powered car, Nissan LEAF is designed to be friendly to the wallet as well as to the environment.
   4.2 List the 4 Factors of Production and give examples of the FOP’s used by Nissan to produce the new “Nissan Leaf”                                                                                            (8)
   ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
    
   4.3 Explain the meaning of the term “productivity”.                                                         (2)
   ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
    
    
   Question 5:
    
   5.1 Draw and label a supply and demand diagram (graph) for eggs.  Indicate the new point of equilibrium for eggs as a result of a disease which kills 50% of all chickens.  (10)
   
   
    
   5.2 List 4 reasons for a shift in demand to occur                                                             (4)
   ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
    
   5.3  Daily foreign exchange rates:
   US Dollar = R 7,30     British Pound = R11              Euro = R9,20
    
               Ben wants to purchase the latest Coldplay CD online and has three options.
                           Option 1 costs USD 11
                           Option 2 costs BP 8
                           Option 3 costs EURO 9
              
   Determine what it would cost for all three options and indicate which would be cheapest option for Ben?                                                                                        (7)
   ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
    
   Question 6:
    
   6.1 What comprises the national budget?                                                            (5)
   ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
    
   6.2 List, explain and give examples of 3 different taxes levied by the government to
   collect revenue?                                                                                                         (9)
   ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
   ………………………………………………………………………………………………………………………………………………………………………………………………………………
    
   Question 7:
    
   “Multi National Corporations (MNC’s) such as McDonalds and Pepsi benefits the South African economy.”  Do you agree or disagree with this statement? Discuss                (20)
   ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
   
   

Section B: [75]

      Total 150

 

 

Assessment Task

 

CRJ and CPJ for a service business

 

Write the transactions listed below in the CRJ and CPJ of Luxa Lawns Garden Services. Test the totals of your columns at the end of the month of July 2010.

 

Date	Details	Source document
1	The owner, L Luxa, deposits R100 000 in the bank account as start-up capital	Receipt LL01
2	Purchases petrol lawnmowers from Lawnmower Sales & Services R49 500	Cheque 5201
2	Purchases fuel to the amount of R1 200 from Pete’s Garage	Cheque 5202
4	Receives R500 from customers for garden services	Invoice L301
6	Pays wages to casual workers to the amount of R2 500	Cheque 5203
	Purchases fuel to the amount of R1 000 from Pete’s Garage	Cheque 5204
7	Receives R3 250 from customers for garden services	Invoice L302
10	Donates R520 to the High School Matric Fund	Cheque 5205
12	Pays wages to the amount of R2 000	Cheque 5206
13	Purchases fuel to the amount of R2 000 from Pete’s Garage	Cheque 5207
15	Receives rental income from neighbour, B Black, for use of the storeroom, R1 000	Receipt LL02
17	Receives R1 660 from customers for garden services	Invoice L303
	Purchases fuel to the amount of R750 from Pete’s Garage	Cheque 5208
20	Pays wages to the amount of R2 000	Cheque 5209
21	L Luxa takes drawings of R3 200 for his own use	Cheque 5210
23	Receives R5 870 from customers for services	Invoice L304
26	Buys fuel to the amount of R3 500 from Pete’s Garage	Cheque 5211
27	Buys invoice books from The Pen & Quill for R90	Cheque 5212
	Purchases fuel to the amount of R350 from Pete’s Garage	Cheque 5213
	Purchases lawnmower spares from Lawnmower Sales & Services, R800	Cheque 5214
29	Pays water and electricity to Matjhabeng Metro, R600 Pays telephone to Telkom, R350	Cheque 5215 Cheque 5216

 

 

 

Suggested Solutions (LO3 AS3)

 

Question number	Possible marks	Solution
1	None	CASH RECEIPTS JOURNAL OF LUXA LAWNS GARDEN SERVICE FOR THE MONTH ENDED JULY 2010 Source doc Date Details Fol Analysis of receipts Bank Current income Debtors’ control Sundry accounts Amount Fol Details LL01 1 L Luxa   100 000 100 000     100 000   Capital L301 4 Services   500 500 500         L302 7 Services   3 250 3 250 3 250         LL02 15 B Black   1 000 1 000     1 000   Rental income L303 17 Services   1 660 1 660 1 660         L304 23 Services   5 870 5 870 5 870                   112 280 11 280   101 000       CASH PAYMENTS JOURNAL OF LUXA LAWNS GARDEN SERVICE FOR THE MONTH ENDED JULY 2010 Source doc Date Details Fol Bank Equipment Fuel Wages Sundry accounts Amount Fol Details 5201 2 Lawnmower Sales & Services   49 500 49 500           5202 2 Pete’s Garage   1 200   1 200         5203 6 Cash   2 500     2 500       5204 6 Pete’s Garage   1 000   1 000         5205 10 High School Matric Fund   520       520   Donation 5206 12 Cash   2 000     2 000       5207 13 Pete’s Garage   2 000   2 000         5208 17 Pete’s Garage   750   750         5209 20 Cash   2 000     2 000       5210 21 L Luxa   3 200       3 200   Drawings 5211 26 Pete’s Garage   3 500   3 500         5212 27 The Pen & Quill   90       90   Stationery 5213 27 Pete’s Garage   350   350         5214 27 Lawnmower Sales & Services   800       800   Repairs 5215 29 Matjhabeng Metro   600       600   Water and Electricity 5216 29 Telkom   350       350   Telephone         70 360 49 500 8 800 6 500 5 560

 

Assessment Task

 

Important international agreements (Individual activity)

 

Read the information below and complete the exercise that follows.

 

 

International agreements are agreements set up between South Africa and countries that do not belong to the African region. These agreements pertain to trade, development and other issues.

 

South Africa trades with countries such as the United States, Germany, Japan and the European Union (EU). They are called our trade partners. The EU entered into the Trade, Development and Cooperation Agreement (TDCA) with South Africa, to create a free trade area between South Africa and the EU over a period of 12 years. The EU also entered into agreements with South Africa regarding wine and spirits.

 

South Africa belongs to the World Trade Organisation (WTO), which was set up in 1995. By July 2008 the WTO had 153 member countries. Trade between these countries was made more profitable when the WTO reduced customs tariffs for trade between member countries to only 4%.

 

In the USA, the Africa Growth and Opportunity Act (AGOA) was passed to increase trade between the USA and African countries. This has benefited South Africa, for it increased trade with the USA by 17%. AGOA allows for the export of a range of products to the USA without South Africa having to pay import taxes in the USA. South Africa exports mainly raw materials to the USA and imports processed goods from them.

 

Some countries have set up a Generalised System of Preferences (GSP) facility to South Africa. These are countries such as Japan, Canada, Norway and Hungary. The GSP means that some goods exported to them will be free of trade tariffs.

 

 

Match the concept or name in Column A on the left with the statement in Column B on the right:

 

 

A	B
a) Norway and Hungary	(i) Legislation that increases trade between the USA and African countries
b) Trade tariffs	(ii) One of South Africa’s international trade partners
c) United States of America	(iii) Organisation set up in 1995 with 153 member countries
d) Africa Growth and Opportunity Act	(iv) A trade facility set up with South Africa that exempts it from paying trade tariffs
e) Import taxes	(v) The WTO reduced this to just 4% between member countries
f) Germany	(vi) Creates a free trade area over a period of 12 years
g) World Trade Organisation	(vii) GSP exempts SA from paying this
h) Generalised System of Preferences	(viii) In terms of AGOA, these don’t have to be paid when exporting to USA
i) Trade, Development and Cooperation Agreement	(ix) Countries that have set up GSP facilities with SA
j) Customs tariffs	(x) Thanks to AGOA, trade with this country increased by seventeen per cent

 

Suggested Solutions

 

Question number	Possible marks	Solution
1	10	a) (ix) b) (vii) c) (x) d) (i) e) (viii) f) (ii) g) (iii) h) (iv) i) (vi) j) (v)

 

 

Assessment Task:

 

The role of GEAR (Individual activity)

 

The RDP could not meet all its objectives. As a result the Growth, Employment and Redistribution (GEAR) Programme was introduced. Do research and write a paragraph about the role of GEAR. Mention at least five facts about GEAR in your paragraph.                                                            [5 marks]

 

Suggested Solutions

 

 

Question number	Possible marks	Solution
1	5	Some suggested facts to include in paragraph: The Growth, Employment and Redistribution (GEAR) Programme was introduced in 1996ü. It took over some of the goals of the RDPü. GEAR wanted to create jobs, and at the same time stimulate the economyü. The GEAR objectives are to bring about a competitive economy that grows and creates enough jobs for all work-seekersü. It also aims to achieve redistribution of income and opportunities favouring the poor; a society in which citizens can enjoy health, education and other services; and an environment in which homes are secure and places of work are productiveü. These goals are very much the same as those of the RDP. To achieve this, GEAR promotes growth through exports and investments. GEAR also promotes redistribution through job creation and the allocation of resources through the budgetü. GEAR focuses on training so that skills can be developed and productivity improvedü. (any five)    [5 marks]

 

 

Assessment Task

 

The functions of a business plan (Individual activity)

 

Analyse the information below and extract and list 10 functions of a business plan.          [10 marks]

 

A business often compiles a business plan when it needs to apply for a business loan. This is a mistake. You do indeed need a business plan when you apply for a loan, but the business plan is the life blood of your business. It is a blueprint according to which you run and expand your business. Many people think a business plan is only necessary when you plan and start up a new business, but a business plan is vital for running a successful business. It helps you to plan ahead and to allocate your resources appropriately. It helps you to prepare for threats and opportunities. It helps you to optimise growth and profit. You cannot implement proper business expansion plans without using your business plan as a guide.

 

 

Suggested Solutions

 

 

Question number	Possible marks	Solution
1	10	Planning a new business Applying for a loan Running your business Expanding your business Planning ahead Allocating resources appropriately Preparing for threats Preparing for opportunities Optimising growth Optimising profit

Assessment Task

 

How a partnership works (Individual activity)

 

Study the advantages and disadvantages of a partnership below. Write a paragraph to explain how a partnership works. Your paragraph should contain at least five facts about a partnership.

[5 marks]

 

Advantages of a partnership	Disadvantages of a partnership
There are no formal requirements for the creation or running of a partnership.	There is no limited liability, so all partners are legally liable for the assets and debts of a partnership.
Between 2 and 20 partners share the contribution of time, work and skills to the business.	The partnership has a limited life: if one partner dies, the partnership is dissolved.
The ability to raise funds increases when more partners join.	A new agreement needs to be signed every time a new partner joins.
	Disagreements can occur because decisions are shared.

 

 

Self-assessment checklist

 

Criteria	Yes	No
I studied the advantages and disadvantages of a partnership.
I wrote a paragraph containing at least five facts about a partnership.
I understand how a partnership works.
I appreciate that good teamwork is required to run a successful partnership.
I understand that partners should believe in sound business principles and have respect for one another.

 

 

Suggested Solutions

 

 

Question number	Possible marks	Solution
1	5	When a partnership is formed, between two and 20 partnersü enter into a legal agreement which determines the percentage share each partner should contribute to the partnershipü. Partners contribute time, work and skills, besides capitalü. The percentage indicated in the agreement is the share the partners are each entitled to of the profits or losses the business makesü. Such an agreement will also set out how assets will be divided should the partnership endü. In a partnership all partners are jointly liable for the debts of the businessü. A partnership has unlimited liability, which means the assets of the partners can be sold to cover debts made by the businessü. When a new partner joins, a new agreement has to be set up and when a partner dies or withdraws, the partnership dissolvesü. (any five or more valid facts)

 

Appendix of Assessment Tools

 

Self-assessment checklist

 

Criteria	Yes	No
I studied the advantages and disadvantages of a partnership.
I wrote a paragraph containing at least five facts about a partnership.
I understand how a partnership works.
I appreciate that good teamwork is required to run a successful partnership.
I understand that partners should believe in sound business principles and have respect for one another.