1031 BEDRYFSEKONOMIE STANDAARDGRAAD BUSINESS...

1031 BEDRYFSEKONOMIE STANDAARDGRAAD BUSINESS ECONOMICS STANDARD GRADE

NOVEMBER 2007

PUNTE/MARKS: 300 TYD/TIME: 3 uur/hours

SENIORSERTIFIKAAT-EKSAMEN – 2007 SENIOR CERTIFICATE EXAMINATION - 2007

Hierdie vraestel bestaan uit 17 bladsye en 'n antwoordblad van 2 bladsye. This question paper consists of 17 pages and an answer sheet of 2 pages.

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Business Economics/SG DoE/Oct.-Nov./2007 Senior Certificate Examination

Copyright reserved Please turn over

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INSTRUCTIONS AND INFORMATION Read the following instructions/information carefully before answering the questions: 1. 2. 3. 4. 5. 6.

This question paper consists of TWO sections, namely SECTION A and SECTION B. SECTION A: COMPULSORY Consists of ONE question with various sub-sections which must be answered by ALL candidates. A separate answer sheet consisting of two pages is provided for QUESTION 1. SECTION B: Consists of EIGHT questions. Answer any FIVE questions

from this section. Number the answers correctly according to the numbering system used in this question paper. Rule off on completion of each answer. Start the answer to each question on a NEW page. Answers should be given in full sentences except where otherwise required. Candidates will be penalised for short, incomplete answers. If more than SIX questions have been answered, only the first SIX applicable answers will be marked, namely: • QUESTION 1 • First FIVE questions from SECTION B Clearly indicate questions that are not to be marked by writing CANCELLED across the page.

7. 8. 9. 10.

Questions must be answered in black or blue ink. Pay attention to neatness, handwriting and language. Non-programmable calculators may be used. Place the completed ANSWER SHEET for QUESTION 1 inside the front cover of the answer book.



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SECTION A (COMPULSORY) Answer QUESTION 1 on the attached answer sheet. Place the completed ANSWER SHEET for QUESTION 1 inside the front cover of the answer book. QUESTION 1

1.1 MULTIPLE-CHOICE QUESTIONS

Four possible options are provided as answers to the following questions. Choose the correct answer by making a cross (X) in the appropriate block on the answer sheet. There is only ONE correct answer to each question. Example: 1.1.17

A B C D

1.1.1

1.1.2 1.1.3

The product range (width) of an enterprise refers to the … A variety of different products manufactured. B different steps followed in the design of a product. C distance a product is transported to the consumer. D marketing strategy of an enterprise. Which ONE of the following aspects is unethical in advertising? A High advertising expenses B Giving goods misleading names C Low advertising expenses D Choice of the wrong advertising medium Identify an example of combination packaging: A Dried peaches in a plastic bottle B Lux soap of various colours in a wooden basket C Trousers and socks in one pack from Pep Stores D Coke cans, each with the face of different members of the South African cricket team

1.1.4 The management of an enterprise has direct control over …

A their customers. B the production process. C their competitors. D the state of the economy.



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1.1.5 The portion of capital of an undertaking which is used to purchase

stock, is known as … capital. A working B fixed C own D borrowed

1.1.6 The holders of … shares are entitled to the payment of dividends

first. A bonus B ordinary C preference D founders'

1.1.7 A monopoly exists in the market when …

A two sellers dominate the market. B free competition prevails. C a few suppliers operate on the market. D only one firm supplies a product in the market.

1.1.8

1.1.9 1.1.10

Theuns Traders insured its building for R100 000. The actual value of the building is R80 000. What will be the compensation for the loss of R50 000 caused by fire? A R100 000 B R80 000 C R50 000 D R40 000 The science of collecting, classifying, using and interpreting numerical data is called … A cost accounting. B statistics. C span of management/control. D diversification. The manufacturing of a small variety of articles in large quantities and with single-purpose machines is known as … A mass production. B interrupted production. C jobbing. D batch production.



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1.1.11

1.1.12 1.1.13 1.1.14 1.1.15 1.1.16

The market where owners and buyers of short-term capital meet is called the … market. A product B capital C share D credit Which ONE of the following is NOT an example of a current asset? A Creditors B Debtors C Trading inventory D Cash on hand The term listing is associated with the … A Land Bank. B South African Reserve Bank. C fresh-produce market. D JSE Securities Exchange Ltd. Westham Leather Works (Pty) Ltd bought 60% shares in Westham Shoes. What type of company would Westham Leather Works (Pty) Ltd be? A Holding company B Controlling company C Subsidiary company D Controlled company The … are the people elected by the owners of a company to manage the affairs of the enterprise. A shareholders B debenture holders C underwriters D board of directors The assets and liabilities of a public company belong to the … A stock exchange. B creditors. C company. D registrar of companies. (16 x 3)

(48)



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1.2 MATCHING ITEMS

Choose a term from COLUMN B that matches a statement in COLUMN A. Write only the letter (A – F) next to the question number (1.2.1 – 1.2.5) on the answer sheet, for example 1.2.6 G.

COLUMN A COLUMN B

1.2.1 In this document conditions such as the ratio in which profits and losses are to be divided and the arbitration clause are set out

1.2.2 This document offers proof that all the registration requirements of the law have been complied with and that the company has been registered legally

1.2.3 This document determines the nature and scope of a company and describes the relationship between the company and outsiders

1.2.4 This document contains, amongst others, the size of each owner's interest, expressed as a percentage

1.2.5 This document introduces the business to the public and offers shares in exchange for cash

A

B

C

D

E

F

prospectus founding state-ment memorandum of association partnership agreement articles of association certificate of incorporation

(10) 1.3 TRUE OR FALSE

Indicate by means of a cross (X) in the appropriate block on the answer sheet whether the following statements are TRUE or FALSE. Example: 1.3.11 A partnership is a one-man business with unlimited liability.

NUMBER TRUE FALSE 1.3.11 X

1.3.1

1.3.2 1.3.3

A commission agent receives del credere commission because he/she bears the risk of the non-payment of accounts for goods he/she sells on credit. Incentives, such as discount vouchers, are used by retailers to promote sales. Autocratic leadership includes workers in the decision-making process.



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1.3.4

1.3.5 1.3.6 1.3.7 1.3.8 1.3.9 1.3.10

The purpose of method study is to find the best way to produce the product. The main function of the Land Bank is to supply financial assistance to the agricultural sector in South Africa. The South African Bureau of Standards (SABS) provides facilities for the examination of fruit and vegetables. A budget is a tool in planning. Primary production costs are the sum of direct raw material costs and indirect material costs. Protection for dependents arising from the death of a breadwinner demonstrates the principle of security. A firm that plans on using photos of soccer stars on the packaging of their products during the 2010 Soccer World Cup, will use kaleidoscopic packaging.

(20)

1.4 CHOOSE THE CORRECT TERM

Complete the following statements by choosing the correct word from the list of words below. Write your answer next to the appropriate question number on the answer sheet, for example 1.4.6 Activating.

activating; communication; controlling; co-ordination; decision-making;

delegation; organising

1.4.1

1.4.2 1.4.3 1.4.4 1.4.5

… is a management activity aimed at creating structures to get work done. … refers to the transfer and receipt of knowledge, feelings, attitudes and information between management and workers. … is concerned with the achievement of harmony between individuals from departments to achieve the objectives of the enterprise. The allocation of powers to subordinates is called … . Comparing actual operating results with recognised standards is called … .

(10)



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1.5 COMPLETE THE TABLE ON THE FORMS OF OWNERSHIP

The table below compares the different forms of ownership. Fill in the characteristics next to the question numbers (1.5.1 to 1.5.6) on the answer sheet, for example 1.5.7 Easy registration.

KEY SOLE TRADER

PARTNERSHIP CLOSE CORPORATION

PRIVATE COMPANY

PUBLIC COMPANY

Minimum ownership 1 2 1 1 1.5.1 Maximum ownership 1 1.5.2 10 1.5.3

Determined by the number of

shares available Name No formalities

Easily changed No formalities

Easily changed 1.5.4

Must be approved by

the registrar of companies and

contain (Pty) Ltd

Must be approved by the

registrar of companies and

contain Ltd Legal status 1.5.5 Business not a

legal entity Regarded as a

legal entity 1.5.6 Regarded as a legal entity

(12)

TOTAL SECTION A: 100 Place the completed ANSWER SHEET for QUESTION 1 inside the front cover of the answer book.



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SECTION B Answer any FIVE questions from this section.

QUESTION 2: MARKETING FUNCTION 2.1 Khumalo, a farmer, has a farm stall situated next to the taxi rank in Durban in

the province of KwaZulu-Natal. Khumalo, himself, sells his fresh fruit to passing motorists under his own brand, namely 'Fruity Days'. The fruit is packed in boxes. The boxes can be used by consumers for other purposes.

2.1.1

2.1.2 2.1.3 2.1.4

Name the form of packaging that is used by Khumalo. What purpose do the boxes serve? Motivate your answer. As what kind of consumer goods would you classify the fruit sold by Khumalo? Give THREE reasons why Khumalo makes use of this distribution channel.

(2) (2) (2) (6)

2.2 Bergenhof Estate CC produces and bottles the following natural wines:

Bergendal Dallenberg Hofbergen 450 mℓ 450 mℓ 450 mℓ 500 mℓ 1 litre 1,5 litres 2,0 litres 1,5 litres 2,5 litres

2.2.1 2.2.2

List the width of Bergenhof Estate's product mix. List the depth of Hofbergen as a natural wine.

(2) (2)



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2.3

Study the trademark below and answer the questions that follow:

2.3.1

2.3.2

List THREE reasons why you consider SPAR to be a good trademark. Name FOUR principles of advertising that should be applied by SPAR.

(6) (8)

2.4 Study the advertisement below and then answer the questions that follow:

TYPIST required

@ LEWIS STORES

GOODWOOD to start

IMMEDIATELY Contact 021 572 2677

for an interview

2.4.1

2.4.2

Select the type of advertising medium most appropriate for this advertisement. Give a reason for your answer. Do you think that there is still a place for the advertising medium in QUESTION 2.4.1 in today's advertising market? Motivate your answer by giving TWO reasons.

(4) (6) [40]



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QUESTION 3: GENERAL MANAGEMENT 3.1 Study the diagram below and answer the questions that follow:

A ⇒ MANAGING DIRECTOR

⇓ ⇓ ⇓

B ⇒ ADMINISTRATIVE MANAGER

PRODUCTION MANAGER

SALES MANAGER

⇓ ⇓ ⇓

C ⇒ CHIEF SECRETARY

WORKSHOP FOREMAN A

SUPERVISORS

⇓ ⇓ ⇓

WORKERS (ADMINISTRATIVE

ASSISTANTS)

☺☻☺☻☺☻

WORKERS

☺☻☺☻☺☻☺☻

WORKERS (SALES

PERSONNEL)

☺☻☻☺☻ 3.1.1 Name the levels of management illustrated by A, B and C. (6) 3.1.2 What is the span of management/control of Foreman A? (2) 3.1.3 Identify the level of management where tactical decisions are

taken. (2)

3.1.4 Who is responsible for giving orders to Foreman A if this company

uses the line organisation structure? (2)

3.2 Planning is the process where the manager looks into the future and makes

plans to carry out certain operations. State FIVE principles of effective planning.

(10)

3.3 Why is the functional organisation structure so popular among managers and

workers? List THREE reasons to support your answer.

(6) 3.4 State THREE ways to motivate employees. (6) 3.5 Modern managers who use participative management skills are delegating

many important tasks to subordinates. Do you think delegation is important? Motivate your answer by giving TWO reasons.

(6) [40]



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QUESTION 4: FINANCIAL FUNCTION 4.1 Peter Parker is the financial manager of Waltons, a well-known stationery

enterprise in South Africa. Peter has to determine the financial needs of Waltons, as well as acquire and use the capital economically. Peter is also in charge of the credit department of Waltons.

Answer the following questions in connection with Peter Parker's tasks: 4.1.1 List FOUR sources of information to determine the creditworthiness

of prospective customers. (8)

4.1.2 Explain TWO factors that determine the working capital of Waltons. (6) 4.1.3 Name FIVE duties of Peter as head of the credit department. (10) 4.1.4 Discuss the TWO types of budgets that Peter uses to do the

financial planning of Waltons. (8)

4.2 Stockpiling refers to the purchasing and holding of buffer stock (reserve

stock). Should all businesses stockpile? Motivate your answer.

(8) [40]



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QUESTION 5: THE ENTERPRISE AND ITS ENVIRONMENT 5.1 Choose from the following descriptions FOUR services rendered by the

Council for Scientific and Industrial Research (CSIR). Write down only the relevant letters of the services rendered by this institution, for example 5.1 J; K.

A Grants short-term loans to producers for seasonal expenses

B Assists in developing the mining industry in South Africa

C Uses surplus short-term funds of the public sector to the advantage of the country

D Offers a consignment inspection scheme to organisations that purchase on a large scale

E Renders a supporting service to manufacturing industries

F Undertakes confidential contractual projects for industrial firms

G Communicates with international institutions to keep up to date with the latest developments in the testing of standards

H Makes annual grants to tertiary institutions to encourage research

(8)

5.2 Describe any FIVE services of the chamber of commerce. (10) 5.3 Discuss any FOUR services of the Johannesburg Stock/Securities Exchange

Limited (JSE Ltd). (12)

5.4 The South African Reserve Bank (SARB) is the central bank of the Republic

of South Africa. It provides various services to banks and other financial institutions.

5.4.1

5.4.2 5.4.3

Explain the following function: Custodian of cash reserves from other banks. State TWO ways in which the SARB can control credit as one of their functions. Discuss the position of consumer credit in South Africa. What is the role of the SARB in this regard?

(2) (4) (4) [40]



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QUESTION 6: PRODUCTION FUNCTION/FINANCIAL FUNCTION 6.1 Study the information below and answer the questions that follow:

(Show ALL calculations.) Primary cost of production R540 000 Total overhead costs R240 000

6.1.1

6.1.2 6.1.3 6.1.4

Calculate the total cost of production. Calculate the unit cost of production if 260 000 units were produced. Calculate the direct labour cost if the cost of direct raw material used amounted to R300 000. Calculate the variable overhead cost per unit for 260 000 units if fixed overhead costs amounted to R80 000.

(2) (3) (2) (4)

6.2 Study the pictures below and answer the questions that follow:

Black & Decker

6.2.1

6.2.2 6.2.3

Each one of the above products is manufactured by Black & Decker by means of an uninterrupted manufacturing system. Why would the manufacturer prefer this production system? Motivate your answer. Black & Decker wants to prevent customers from having accidents. What advice could you give them? Motivate your answer. List any TWO fire prevention measures that need to be taken by Black & Decker in their factory.

(10) (6) (4)

6.3 Discuss THREE motives for keeping cash. (9)

[40]



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QUESTION 7: ADMINISTRATION FUNCTION/MARKETING FUNCTION 7.1 Study the information given below and answer the questions that follow: Johnson and Johnson is a pharmaceutical firm with well-trained staff

members and an upgraded computer system that they use for their administration. The administration system that they use implies that all their administration activities are carried out at their head office.

7.1.1 Identify the administration system that Johnson and Johnson uses. (2) 7.1.2 State any THREE advantages of the administration system in

QUESTION 7.1.1. (6)

7.1.3 Name any FOUR factors that could have influenced Johnson and

Johnson to make use of the administration system that they are using.

(8)

7.2 Determining the best price for a product is very important because it has a

direct effect on the profitability of the enterprise. List SIX factors that will influence price determination.

(12)

7.3 When prices go up, quantity demanded goes up.

Do you agree with this statement? Motivate your answer.

(4)

7.4 Why do entrepreneurs prefer to establish informal businesses? Give FOUR

reasons for this practice.

(8) [40]



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QUESTION 8: FORMS OF OWNERSHIP 8.1 Study the illustration below and answer the questions that follow:

8.1.1 Identify the form of ownership illustrated above. (2) 8.1.2 State FIVE advantages of this form of ownership. (10) 8.1.3 It is possible for Tixi to convert this form of ownership into a private

company. List FIVE documents that he would have to submit to the registrar of companies before he receives a certificate of incorporation, granting him permission to operate as a private company.

(10)

8.2 Trust Bank, United Bank, Allied Bank and Volkskas Bank merged to form

ABSA Bank. What type of merger (amalgamation) took place? Motivate your answer.

(4)

8.3 State FIVE details that must be shown in the founding statement of a close

corporation. (10)

8.4 Is a partnership responsible for paying taxes on its income? Explain your

answer. (4) [40]

Business Economics/ SG 17 DoE/Oct.-Nov./2007 Senior Certificate examination

Copyright reserved

QUESTION 9: MISCELLANEOUS Answer any FOUR of the following questions:

9.1 9.2 9.3 9.4 9.5 9.6

State any FIVE disadvantages of the line and staff organisation structure. By having enough cash on hand, unexpected opportunities to make a profit may be used to the best advantage of the business. State any FIVE other advantages of having enough cash on hand. State any FIVE advantages of insurance. List FIVE details that must be included in the name clause of the memorandum of association of a public company. State any FIVE factors or requirements of quality control. Give FIVE reasons why a partnership may be dissolved. TOTAL SECTION B: GRAND TOTAL:

(10) (10) (10) (10) (10) (10) [40] 200 300

Business Economics/SG 1 DoE/Oct.-Nov./2007 Senior Certificate Examination


EXAMINATION NUMBER:

CENTRE NUMBER:

PLACE THE COMPLETED ANSWER SHEET FOR QUESTION 1 INSIDE THE FRONT COVER OF THE ANSWER BOOK. SECTION A – ANSWER SHEET QUESTION 1 1.1 MULTIPLE-CHOICE QUESTIONS Answer each question by making a cross (X) in the appropriate block.

1.1.1 A B C D 1.1.2 A B C D 1.1.3 A B C D 1.1.4 A B C D 1.1.5 A B C D 1.1.6 A B C D 1.1.7 A B C D 1.1.8 A B C D 1.1.9 A B C D 1.1.10 A B C D 1.1.11 A B C D 1.1.12 A B C D 1.1.13 A B C D 1.1.14 A B C D 1.1.15 A B C D 1.1.16 A B C D

(16 x 3) (48)

1.2 MATCHING ITEMS

Write only the letter (A – F) from COLUMN B next to the relevant question number. 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5

(10)

Business Economics/SG 2 DoE/Oct.-Nov./2007 Senior Certificate Examination

Copyright reserved

EXAMINATION NUMBER:

CENTRE NUMBER:

1.3 TRUE OR FALSE Make a cross (X) in the appropriate block.

NUMBER TRUE FALSE 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 1.3.7 1.3.8 1.3.9 1.3.10

(20)

1.4 CHOOSE THE CORRECT TERM

1.4.1 1.4.2 1.4.3 1.4.4 1.4.5

(10)

1.5 COMPLETE THE TABLE ON THE FORMS OF OWNERSHIP

1.5.1 1.5.2 1.5.3 1.5.4 1.5.5 1.5.6

(12)

TOTAL SECTION A: 100

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