Economic Management Sciences Grade 7 November 2020 Question Paper

Downloaded o s- I l- 2olo tYL*4lu from hlayiso.com b Laerskool Van Dyk Primary EMS - Gr 7 .e EMls:700160994 rime: 90 minutes Examinator: Mrs. c. Kruge, M Moderator : Mrs. E. Erwee Date: November 2020 Marks: 100 Term 4 I Name and Surname: Gr.7 MARK H.O.O. INTERSEN PHASE 100 XOOERATED o-29 1 2 30-39 qp tciriizoro'p, 3 40-49 '=Fnrce: fffnruee 4 50-59 5 60-69 6 70-79 7 80 - 100 Topics and Aims: 1. Financial Literacy 2. Entrepreneurship .1. Ilt.!_l::::r..__ SECTION A SECTION B _SIqt_Q'{e_s_tiqns Economy Question 4 20 marks Questionl 10 marks Entrepreneurs Question 5 20 marks Question2 5 marks Question 3 5 marks Total Section A: 20 marks Total Section B: 40 marks SECTION C: Financial literacy Question6 10 marks Financial literacy Question 7 20 marks Financial literacy Question 8 10 marks Total Section C 40 marks TOTAL 100 marks

Downloaded from hlayiso.com . Answer ALL the questions. . Questions 4,5,7and 8 must be completed on the answer sheet. . Write your name on the answer sheet. . This question paper consists out of 8 pages. Section A Question 1: 1. Choose the correct answer and write only the letter on the line provided 1 .1 . Monev that you will have to borrow from somebodv a) Own Capital b) Physical Capital c) Human Capital d) Borrowed Capital 1.2. Choose the best description for an informal business a) lt is a business that operates from a building registered in the busrness ^a-. b) The business is legally registered and pay tax. c) The Business must pay minimum wages to all the employees d) The business is easy to start and there is no legal requirements 1.3. The correct accountinq equation is: a) Assets =Owner's Equity - Liabilities b) Assets = Owner's Equity + Liabilities c) Owner's Equity = Assets - Liabilities d) Owner's Equity = Assets + Liabilities 1.4. Choose the answer that does NOT fit: SMART qoals include the followinq: a) Specific b) Modern c) Realistic d) Timely

Downloaded from hlayiso.com 1 5 Choose the item that will not be recorded as an excs^s: a) Salaries and wages b) Electricity c) Trading License d) Commission received TOTAL Question 1: (5 x2=10) Question 2: 2. Fit the description in column B with the word in column A, write only the letter next to the number, for example 2.6 - F COLUMN A COLUMN B 2.1 Accounting A) A plan for the estimated income and expenses of a business 2.2 Advertising B) The owner's investment in the business plus income less expenses 2.3 Stokvel C) A system of collecting documents and recording transactions of the bank accounts of the business in various books 2.4 Budget D) A group of people that come together and deposit a certain amount of money every month and then take turns in taking the whole amount every month. 2.5 Owner's equity E) Any form of presentation of your product or idea with the aim of getting customers interested in buying your product Answers. 21 2.2 - 23- 2.4 - 2.5 - TOTAL Question 2: (5 x1=5)

Downloaded from hlayiso.com Question 3: 3 lnoicate if the followino statements are TRUE of FALSE. Write onlv the words TRUE or FALSE on the answer sheet: 3 i Current assets has long term value and can be used to generate rncome for the business. 3.2 Workers receive wages every month for the work they have done. 3.3. Liabilities is any money that is owed to people outside the business and it is good for the business. 3.4. Goals give a business a sense of direction and purpose. 3.5. Entrepreneurs are people that want to start their own business but are afraid to take risks. TOTAL Question 3: (5 x1=5) TOTAL SECTION A: 20 SECTION B Question 4: ry ilI) @8-$:# t ffi \5z fi{ttil"1:'J ,Q+ pa trnrtirtg prrrerrs peellng & coring trimming rliciug pirte rpplr rore + # pcrl j cru(lr !(lurotts ('\trict ffiil t E./\ itig1il I Sthldr,lsare trI poly hr drorl alkanost{: produclion -

Downloaded from hlayiso.com 4. Study the illustration at the bottom of paqe 4 and answer the questions that follow: 4 '1. All the steps that any product must follow from the beginning until it is ready for consumption or use is called the... . . .. " process (1) 4.2.Use the block below and clearly explain the difference between needs and wants: (4) NEEDS WANTS Ulderlurelhe_qaffe c Lenslver : 4.3.All the materials and factors of production that are used to make a good or service is known as ( inputs / outputs ) (1) 4.4. Classify the followinq statements in qoods OR services, (5) 4.4.1. Mr. Mosige visit the doctor for a routine checkup. 4.4 2. Sharon buys flowers for her mother in the gift shop. 4.4.3. Mr. Makhado takes his car to the garage to fix the fan belt. 4.4.4. Bennie has a luxury 4x4 vehicle. 4.4.5.The groceries Jenny buys weekly in the supermarket. 4.5. Name the four factors of oroduction. (4)

Downloaded from hlayiso.com 4.6. Discuss the disadvantaqes of the use of technoloqv in the production process. (4) Underline the correct answer: 4.7. Resources that can never be renewed and must be used cautiously is known as ( renewable /non-renewable ) resources. (1) TOTAL Question 4 (2Ol Question 5: 5 Read the following case study and complete the questions that follow: Rina is the owner of a Hairsalon in a very big city. She is a talented hairdresser and has a lot of regular clients. She struggles a bit with back problems and to work foi 8 hours a day is very difficult. Some of her employees resigned due to the fear of COVID 19 and she is short of employees. She wants to expand her business, because she have a lot of extra space. She also considering to start a nail salon in part of the building. She needs to apply for a loan at the local bank to do the expansion. The outbreak of COVID 19 affected her business badly and she was forced to close during the lockdown period. There is also another hair and nail salon down the street that offers a free head massage with every appointment. She decided to advertise her business to get more clients but are unsure of how to design any advertisement. 5.1. Use the table on the next paqe and do a SWOT analysis for the business (8) 6

Downloaded from hlayiso.com 6 SWOT ANALYSIS ry* 6.1 . Discuss any three thinqs anv entrepreneur can do to achieve his/her ooals (3) 6.2. The AIDA principle must be applied in anv advertisement that a business desiqn. Explain the AIDA principal by_nemtng the four elements (4)

Downloaded from hlayiso.com 6 SWOT ANALYSIS Weafnesses 6.1 Discuss anv three thinqs any entrepreneur can do to achieve his/her qoals (3) 6.2. The AIDA principle must be applied in anv advertisement that a business desiqn. Explain the AIDA principal hyxexnug the four elements (4)

Downloaded from hlayiso.com 6 3 Name any two advantages for a business if they use recvcled material. (2) 6.4. RecOmmbnd anv three strateqies that Rina can follow to ensure her business will be safe durinq the COVID 19 crisis. (3) TOTAL Question 5 (20) TOTAL SECTIONB: 40 SECTIONC Question 6: 6. Choose the correct accountinq word from the block to fit the description Raw material Bank account Stationary Overdraft Maintenance Trading stock Liabilities Vehicles Capital Petty Cash 6.1 . Any company cars, trucks, tractors etc. that a business use for transport. (1) 6.2. Everything a business use to make their products or deliver the service. (1) 6.3. The money the owner deposit to start the business. (1)

Downloaded from hlayiso.com 6.4. The things a business buy and sell at a profit. (1) 6 5 The place ,,1'here a tne money are deposited. (1) 6.6. A small amount of notes and coins that the business keep to buy small purchases. ('1) 6.7. All the debts that the business has to pay. (1) 6.8. A loan from the bank where the bank allows you to draw more money than you have in your account. (1) 6.9. All the paper and writing and printing material. (1) 6.10. The account a business use for all the repairs done. (1) TOTAL Question 6 (10) QuestionT: 7. Read the followinq scenario and answer the question: "Sara's Glamouf is a beauty salon. Sara is a very good business owner but she struggles with the accounting of her business. Please help Sara with the bookkeeping of her business by answering the following questions. 7.1 Use the table below and help Sara to organize all her slips according to income and expenses. (10)

Downloaded from hlayiso.com Description lncome Expense 7.1.1 The Electricity Bill 1 800 712 Bank charqes oaid 150 713 The Telephone account 1 000 714 lnterest received on bank account 250 715 lncome received for beauty treatments for 7800 the month 7.1.6 Maintenance 1 500 7 .1.7 Donation from family member 1 000 7.1.8 Pavino the FuelAccount 800 7 1.9 lnterest on investment 200 7110 Payment on the Bond account 3000 (10) 7.2 Calculate whether Sara's Glamour made a profit or a loss during the month. Use the figures in the table above. Show how you got to your answer (7) 7 3 Calculate the profit / loss for the business in the table below. (Show your method of working out your answer.) (3) Number lncome Expense PROFIT / LOSS 7.3.1 R 280 000 R 200 000 7.3.2 R 560 000 R 560 000 7.s.3 R 300 000 R 300 500 TOTAL Question 7: l20l 10

Downloaded from hlayiso.com Question 8: 8 Nico wants to start his own business, but he has to borrow money from the bank to finance his business. Use the information in the table below to help Nico compile a statement of net worth: House 300 000 Vehicle 50 000 Loan to pay another vehicle 30 000 Salary 15 000 Bank overdraft 3 000 Clothing account 2 000 Savings account 5 000 Groceries 15 000 Furniture 8 000 11

Downloaded from hlayiso.com STATEMENT OF NET WORTH ASSETS House Vehicle Furniture Savings account INCOME Salary EXPENSES Groceries LIABILITIES Clothing account Bank overdraft Loan to pay another vehicle NET WORTH TOTAL Question 8:(10) TOTAL SECTIONC:40 GRAND TOTAL (1OO)