Economic And Management Sciences Grade 9 November EC 2012 Memo

Downloaded from hlayiso.com Province of the EASTERN CAPE EDUCATION SENIOR PHASE GRADE 9 NOVEMBER 2012 ECONOMIC AND MANAGEMENT SCIENCES MEMORANDUM MARKS: 100 This memorandum consists of 6 pages.

Downloaded from hlayiso.com 2 ECONOMICS AND MANAGEMENT SCIENCES (Memo) (NOVEMBER 2012) QUESTION 1 /10/ (LO1AS1; LO1AS2; LO2AS1; LO2AS3; LO3AS1; LO3AS4; LO4AS1; LO4AS3) 1.1 1.1.1 C public company √ (1) 1.1.2 B private company √ (1) 1.1.3 C small, medium and micro-enterprise. √ (1) 1.1.4 A trade surplus √ (1) 1.1.5 B Assets minus Liabilities equals Owner’s equity. √ (1) 1.2 1.2.1 E (1) 1.2.4 F (1) 1.2.2 G (1) 1.2.5 D (1) 1.2.3 B (1) [10] QUESTION 2 (LO1AS3) /15/ 2.1 2.1.1 No change in demand, only in quantity demanded √√ (2) 2.1.2 Decrease due to change in the price of substitute goods √√ (2) 2.1.3 Decrease due to changes in consumer taste √√ (2) 2.1.4 Increase due to change in consumers’ price expectations √√ (2) 2.2 2.2.1 Movement from curve S1 to curve S2 is an increase in supply because the quantity supplied increases for every price. √√ (2) 2.2.2 (S3 - Answer on graph above) (2) 2.3 Imports bring goods into a country that the country does not produce itself or has little of. √ (1) 2.4 Exports bring foreign money into the country and stimulate the economy √ (1) 2.5 The foreign sector includes economic activity(foreign trade) and economic participants outside the borders of the domestic country√ (1) [15]

Downloaded from hlayiso.com (NOVEMBER 2012) ECONOMICS AND MANAGEMENT SCIENCES (Memo) 3 QUESTION 3 (LO2AS1) /12/ 3.1 A budget deficit is created when Government spends more money than it receives. √ This means Government expenditure exceeds its revenue (income)√ (2) 3.2 Government can:  reduce taxes √  give rebates √  increase government spending. √ (Any 2) (2) 3.3 Lower productivity causes a business to be less profitable. This means that eventually the business would have to reduce its workforce or close completely. √√ The income of such a business is lost to the economy and also the income of the households who relied on the business for their salaries and wages.√√ (Any other relevant response) (2x2) (4) 3.4 Good work ethic means a person knows his/her job and has a positive loyal attitude towards the job and the employer. √ It includes characteristics such as efficiency, honesty, integrity and accountability. √ (2x1) (2) 3.5 Meeting basic needs such as making jobs available and housing√/land distribution and reform. √ Developing human resources through education and training√ Building the economy by addressing low levels of investment and unemployment√ Democratising the state and society by focusing on all three spheres of government to facilitate socio-economic development √ Implementing RDP through proper planning and coordination √ (Any 2x1) (2) [12]

Downloaded from hlayiso.com 4 ECONOMICS AND MANAGEMENT SCIENCES (Memo) (NOVEMBER 2012) QUESTION 4 (LO3AS1; LO3:AS3) /16/ DEBTORS JOURNAL OF HANSENS STATIONERS FOR MAY 2012 Doc Cost of Day Details Fol Sales No Sales HAN45 3 Soltech Systems√ D1 625√ 500√√ HAN46 8 General Electric Appliances√ D2 825√ 660√√ HAN47 20 Soltech Systems√ D1 1 200√ 960√√ 2 650√ 2 120√ (14÷2) (7) DEBTORS LEDGER OF HANSENS STATIONERS Soltech Systems D1 Date Details Fol Debit Credit Balance May 1 Account rendered√ 1 000√ 3 Invoice HAN45√ DJ√ 625√ 1 625√ 15 Receipt no CT 015√ CRJ√ 1 625√ -√ 20 Invoice HAN47√ DJ√ 1 200√ 1 200√ 28 Receipt no CT 017√ CRJ√ 500√ 700√ (18÷2) (9) [16] QUESTION 5 (LO3AS3) /26/ 5.1 5.1.1 Profit = Sales – Cost of sales = R 22 500 – R 15 000√ = R 7 500√ Percentage profit = R 7 500 x 100 --------- -----√ R 15 000 1 = 50%√ (4÷2) (2) 5.1.2 Sales = Cost of sales + mark-up√ = R 10 + ( R10 x 30%)√ = R10 + R3√ = R 13√ (4÷2) (2) 5.1.3 Cost of sales = Sales x 100 ---------------------√ 100 plus Mark up = R 500 x 100 -------√ 160 = R 312,50√√ (4÷2) (2)

Downloaded from hlayiso.com (NOVEMBER 2012) ECONOMICS AND MANAGEMENT SCIENCES (Memo) 5 5.2 SOLI DEO MUSICAL INSTRUMENTS BALANCE SHEET ON 29 FEBRUARY 2012 ASSETS NON-CURRENT ASSETS Fixed assets NOTE 1 655 000√ CURRENT ASSETS 218 115√ Trading stock 162 850√ Accounts receivable 25 850√ Cash and cash equivalents NOTE 2 29 415√ TOTAL ASSETS 873 115 (½ mark) EQUITY AND LIABILITIES OWNER’S EQUITY Capital NOTE 3 349 456√ LONG-TERM LIABILITIES 475 000√ Mortgage bond 475 000√ CURRENT LIABILITIES 48 659√ Accounts payable 48 659√ TOTAL EQUITY AND LIABILITIES 873 115 (½ mark) (11) SOLI DEO MUSICAL INSTRUMENTS NOTES TO THE BALANCE SHEET 1 FIXED ASSETS/TANGIBLE ASSETS Buildings 530 000√ Vehicles 125 000√ 655 000 (½ mark) 2 CASH AND CASH EQUIVALENTS Bank 9 760√ Cash on hand 19 655√ 29 415 (½ mark) 3 CAPITAL/OWNER’S EQUITY Balance (at the end of previous year – 28 February 2011) 356 000√ plus Net profit 29 956√ minus Drawings (36 500)√ Balance (at the end of current year – 29 February 2012) 349 456√ (9) [20]

Downloaded from hlayiso.com 6 ECONOMICS AND MANAGEMENT SCIENCES (Memo) (NOVEMBER 2012) QUESTION 6 (LO4AS1) /14/ 6.1 Perseverance √, Hard Work √, Desire √ (Any 2) (2) 6.2 Informal Sector √, she is a hawker √ (2) 6.3 She did not have any customers √ (1) 6.4 STRENGTH Years of experience/diploma in computers √ (1) WEAKNESS Limited financial resources √ (1) OPPORTUNITY Big customer base/Expansion possibilities √ (1) THREAT She did not have any customers √ (1) 6.5 1. Goals and objectives √ 2. Executive summary √ 3. Financial plan √ 4. Marketing plan √ 5. Operations plan/HR plan √ (5) QUESTION 7 (LO4AS3) /7/ 7.1 Owned by two to twenty partners √ Unlimited liability for debts √ Must dissolve in case of change in membership √ Contractual agreement can be in writing or oral. √ There are no legal requirements in starting a partnership. √ (Any other relevant response) (Any 3) (3) 7.2 ADVANTAGES: Separate legal entity √, Unlimited continuity √, Limited liability for debts √ It is easier to establish as there are fewer legal requirements than for companies. √ (Any other relevant response) (Any 2) DISADVANTAGES: Capital is limited to what ten members can contribute √ Only natural persons can be members of the CC √ A member of the CC can be personally held liable for the losses of the CC √ (Any other relevant response) (Any 2) (4) TOTAL: 100

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